Home News Headlines World shares advance, despite Wall Street’s tumble, as China pledges to boost consumer spending
News Headlines

World shares advance, despite Wall Street’s tumble, as China pledges to boost consumer spending

Share
Share

Shares in Europe and Asia advanced Friday, shrugging off another decline on Wall Street, with markets in China gaining after state-run banks and other financial institutions were ordered to do more to help spur more consumer spending.

Germany’s DAX rose 0.4% to 22,667.45, while the CAC 40 in Paris climbed 0.7% to 7,996.78. Britain’s FTSE 100 was up 0.4% at 8,577.97.

U.S. stocks looked primed for gains, with the future for the S&P 500 up 0.7% while that for the Dow Jones Industrial Average was 0.5% higher.

In Asian trading, Hong Kong’s benchmark jumped 2.1% to 23,959.98, while the Shanghai Composite index surged 1.8% to 3,419.56.

China’s National Financial Regulatory Administration issued a notice Friday ordering financial institutions to help develop consumer finance and encourage use of credit cards, do more to aid borrowers who run into trouble, and be more transparent in their lending practices.

Economists say China needs consumers to spend more to get the economy out of the doldrums, although most have advocated broader, more fundamental reforms such as increasing wages, social welfare and support for public health and education.

In Tokyo, the Nikkei 225 added 0.7% to 37,053.10, while South Korea’s Kospi slipped 0.3% to 2,566.36.

Australia’s S&P/ASX 200 gained 0.5% to 7,789.70, while Bangkok’s SET jumped 1.2%. The Taiex in Taiwan was nearly unchanged.

On Thursday, Wall Street’s sell-off deepened as President Donald Trump’s escalating trade war dragged the S&P 500 more than 10% below the record it set last month.

A 10% drop is big enough that professional investors have a name for it — a “correction” — and the S&P 500’s 1.4% slide on Thursday sent the index to its first since 2023. The benchmark index closed at 5,521.52.

“For now, traders are bracing for another round of policy-induced whiplash, knowing full well that in this environment, certainty is a luxury they won’t be getting anytime soon,” Stephen Innes of SPI Asset Management said in a commentary.

Adding to risks was a partial government shutdown that might ensue if Congress fails to pass its annual appropriations bill.

The losses came after Trump upped the stakes in his trade war by threatening 200% tariffs on Champagne and other European wines and alcohol, unless the EU rolls back a tariff on U.S. whiskey it imposed in response to U.S. tariffs on European steel and aluminum. Not even a double-shot of good news on the U.S. economy could stop the bleeding.

The Dow slumped 1.3%, while the Nasdaq composite fell 2%.

The dizzying swings for stocks result from uncertainty about how much pain Trump will let the economy endure through tariffs and other policies in order to reshape the country and world as he wants. The president has said he wants manufacturing jobs back in the United States, along with a smaller U.S. government workforce and other fundamental changes.

Measures of confidence in the economy for U.S. households and businesses have dropped due to uncertainty about which tariffs will stick from Trump’s barrage of on -again, off -again announcements. A pullback in spending that could sap vitality from the economy, and some U.S. businesses say they’ve already begun to see a change in their customers’ behavior.

Still, there was good news on the economic front.

One report showed inflation at the wholesale level last month was milder than economists expected, in line with an encouraging report a day earlier on consumer inflation.

A separate report said fewer U.S. workers applied for unemployment benefits last week than economists expected, suggesting the the job market is steady.

In other dealings early Friday, U.S. benchmark crude oil gained 90 cents to $67.45 per barrel, while Brent crude, the international standard, was up 85 cents at $70.73 per barrel.

The U.S. dollar rose to 148.93 Japanese yen from 147.82 yen. The euro slipped to $1.0851 from $1.0855.

Share

Leave a comment

Leave a Reply

Latest News

Related Articles
Boats

For Sale! 2016 Sea Ray 350 Sundancer – $180,000

Reel Deal Yacht is pleased to feature a meticulously maintained 2016 Sea...

Lifestyle & Travel

Cristiano Ronaldo and Georgina Rodriguez Elevate Their Travel Experience with a €50 Million Luxury Jet – Asianet Newsable

Cristiano Ronaldo and Georgina Rodríguez: Soaring to New Heights with a Bombardier...

Luxury Cars

10 High-End Sports and Luxury Cars That Use Components from Affordable Everyday Vehicles

The Surprising Overlap: When Supercars and Everyday Vehicles Collide Most people think...

Luxury Goods

Discover the Top 10 Luxury Purchases of Affluent Travelers and Where to Find Them

The Luxurious Pursuits of Wealthy Travelers: A Guide to High-Value Purchases In...

Sports

No. 6 St. John’s beats Creighton 82-66 for 1st Big East Tournament crown in 25 years

Regular-season champs. A tournament title. Pride in the program fully restored. The...

About Us

Founded by Francesca Perez in Miami in 2022, A BIT LAVISH is your go-to source for luxury living insights. Covering yachts, boats, real estate, health, and news, we bring you the best of Miami's vibrant lifestyle. Discover more with Miami's Magazine.

Newsletter

Sign up for our newsletter to get the latest updates and articles directly to your inbox.

Please enable JavaScript in your browser to complete this form.

Copyright © 2024 ABIT LAVISH. Miami's Magazine Est. 2022, All rights reserved.

Legal Notice: At A Bit Lavish, we pride ourselves on maintaining high standards of originality and respect for intellectual property. We encourage our audience to uphold these values by refraining from unauthorized copying or reproduction of any content, logo, or branding material from our website. Each piece of content, image, and design is created with care and protected under copyright law. Please enjoy and share responsibly to help us maintain the integrity of our brand. For inquiries on usage or collaborations, feel free to reach out to us +1 305.332.1942.

Translate »