Global Shares Fall on China Worries 09/28 05:12
Global shares were mostly lower Thursday in subdued trading on looming
worries about China property woes.
TOKYO (AP) -- Global shares were mostly lower Thursday in subdued trading on
looming worries about China property woes.
France's CAC 40 shed 0.3% to 7,050.19 in early trading. Germany's DAX
slipped 0.4% to 15,164.02. Britain's FTSE 100 edged down 0.6% to 7,544.91. U.S.
shares were set to drift lower with Dow futures down nearly 0.1% at 33,759.00.
S&P 500 futures was virtually unchanged at 4,313.00.
Trading in shares of heavily indebted Chinese property developer China
Evergrande Group was suspended in Hong Kong. That followed media reports that
the chairman of Evergrande, Hui Ka Yan, had been taken away earlier this month
and placed under police watch.
Evergrande is the world's most heavily indebted real estate developer and is
at the center of a property market crisis that is dragging on China's economic
"The relatively quiet economic calendar today may lead sentiments on a more
subdued tone, while reservations on risk taking may continue to revolve around
developments on China's property sector," said Yeap Jun Rong, market analyst at
The Hang Seng index slid 1.4% to 17,373.03. The Shanghai Composite was up
0.1% to 3,110.48.
Trading was closed in South Korea for a holiday. Japan's benchmark Nikkei
225 dropped 1.5% to 31,872.52. Sydney's S&P/ASX 200 slipped nearly 0.1% to
After more than a decade in which the Federal Reserve would quickly cut
rates in order to help the economy, still-high inflation is now discouraging
the Fed from lowering rates. Its main interest rate is already at its highest
level since 2001, and the Fed indicated last week it will cut rates in 2024 by
less than earlier expected.
A long list of worries is also tugging at financial markets. The most
immediate is the threat of another U.S. government shutdown as Capitol Hill
threatens a stalemate that could shut off federal services across the country
as soon as this weekend.
Stock prices have managed through past shutdowns relatively well, but
conditions may be a little different this time.
Several highly influential reports are supposed to come in the coming weeks.
The next monthly jobs report is due on Oct. 6, and two big inflation reports
are due the following week.
Other threats looming over Wall Street include shaky economies around the
world, a strike by U.S. auto workers that could put more upward pressure on
inflation and a resumption of U.S. student-loan repayments that could dent
spending by households.
In energy trading, benchmark U.S. crude slipped 3 cents to $93.65 a barrel.
It rallied $3.29 to settle at $93.68 per barrel Wednesday, up from less than
$70 in June. It's threatening to top $100 again for the first time since the
summer of 2022. Brent crude, the international standard, was unchanged at
In currency trading, the U.S. dollar fell to 149.37 Japanese yen from 149.63
yen. The euro cost $1.0518, up from $1.0509.