Global markets mostly declined on Wednesday following a mixed finish on Wall Street. The CAC 40 in France gained 0.3%, reaching 7,429.55, and Germany’s DAX increased by 0.4% to 18,340.84. Conversely, the UK’s FTSE 100 fell 0.4% to 8,202.70. U.S. futures indicated a lower open, with Dow futures down 0.3% at 40,667.00 and S&P 500 futures losing 0.3% to 5,488.50.
Investors are closely watching the impact of the U.S. presidential debate between Vice President Kamala Harris and former President Donald Trump. Historical trends suggest that expectations of a Trump reelection could bolster the U.S. dollar, given his past advocacy for tariffs.
In currency markets, the U.S. dollar fell to 141.66 Japanese yen from 142.41 yen. The euro rose to $1.1045 from $1.1023. The dollar briefly dipped to 140 yen levels following speculation about a potential interest rate hike by the Bank of Japan.
Asian markets saw declines with Japan’s Nikkei 225 dropping 1.5% to 35,619.77 and Australia’s S&P/ASX 200 falling 0.3% to 7,987.90. South Korea’s Kospi decreased 0.4% to 2,513.37, despite a slight decrease in the unemployment rate to 2.4% in August. Hong Kong’s Hang Seng declined 0.7% to 17,108.71, and the Shanghai Composite slipped 0.8% to 2,721.80.
The U.S. Federal Reserve is shifting focus from combating high inflation to supporting economic stability. The size of potential rate cuts will depend on upcoming inflation reports. Economists forecast an inflation rate of 2.6% for August, down from July’s 2.9%.
In energy markets, U.S. crude rose by $1.20 to $66.95 per barrel, and Brent crude increased by $1.11 to $70.30 per barrel.
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