Global benchmarks are mixed as market focus turns to the Federal Reserve
[September 17, 2025] By
YURI KAGEYAMA
TOKYO (AP) — Global shares traded mixed Wednesday after U.S. stocks
edged down from record highs and as market focus turned to expectations
for the Federal Reserve's first interest rate cut of the year.
France's CAC 40 edged up nearly 0.1% in early trading to 7,824.89, while
the German DAX surged 0.4% to 7,824.89. Britain's FTSE 100 added 0.2% to
9,213.50. U.S. shares were set to be little changed with Dow futures
unchanged at 46,121.00. S&P 500 futures inched down less than 0.1% to
6,664.00.
Japan's benchmark Nikkei 225 slipped 0.3% to finish at 44,790.38.
The Finance Ministry reported Japan's exports to the U.S. dropped 13.8%
in August compared to the same month the previous year, marking the
fifth straight month of declines, as auto exports were hit by President
Donald Trump's tariffs.
U.S. tariffs on Japanese automobiles and auto parts dropped from 27.5%,
the amount Trump initially levied, to 15% this week, still higher than
the original 2.5%. Wednesday's data was for the month of August, when
the tariffs were higher. Japan's overall exports to the world for the
month were little changed, slipping 0.1%, as exports grew to Europe and
the Middle East.
Australia's S&P/ASX 200 slipped 0.7% to 8,818.50. South Korea's Kospi
dropped nearly 1.1% to 3,413.40.
Hong Kong's Hang Seng surged 1.8% to 26,908.39, while the Shanghai
Composite rose nearly 0.4% to 3,876.34, as technology shares rose on
what analysts said were hopes investments in artificial intelligence
will prove lucrative. Alibaba Group stocks jumped 2.6%, while Baidu
stocks surged nearly 16%.
[to top of second column] |
Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI) at the foreign exchange dealing room of
the Hana Bank headquarters in Seoul, South Korea, Tuesday, Sept. 16,
2025. (AP Photo/Ahn Young-joon)
Stocks have run to records on expectations that the Fed will announce
the first of a series of cuts to rates on Wednesday in hopes of giving
the U.S. economy a boost. The job market has slowed so much that traders
believe Fed officials now see it as the bigger danger for the economy
than the threat of higher inflation because of Trump’s tariffs.
The Fed has been holding off on cuts to rates because inflation has
remained above its 2% target, and lower interest rates could give it
more fuel.
A report on Tuesday said shoppers increased their spending at U.S.
retailers by more last month than economists expected. The data did
little to change traders’ expectations for a cut to interest rates on
Wednesday, followed by more through the end of the year and into 2026.
In energy trading, benchmark U.S. crude lost 46 cents to $64.06 a
barrel. Brent crude, the international standard, fell 47 cents to $68.00
a barrel.
In currency trading, the U.S. dollar edged up to 146.43 Japanese yen
from 146.40 yen. The euro cost $1.1853, down from $1.1867.
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