World shares showed a mixed performance on Friday, influenced by Wall Street's decline in response to potentially discouraging economic data. The future for the S&P 500 was up 0.3%, while the Dow Jones Industrial Average rose 0.2%. European markets opened with mixed results as investors evaluated the European Central Bank's rate cut decision.
Germany's DAX added 0.2%, reaching 20,465.58, while the CAC 40 in Paris edged 0.1% lower to 7,416.55. In the UK, the economy unexpectedly shrank by 0.1% month-on-month in October, driven by declines in construction and production, while the services sector remained stagnant. The FTSE 100 gained 0.2% to 8,326.93.
Chinese leaders concluded a two-day economic policy meeting in Beijing, with reports indicating plans to increase government borrowing and ease credit to stimulate investment and spending. However, the lack of detailed outcomes left investors uncertain. The Hang Seng in Hong Kong and the Shanghai Composite index experienced declines, while Japan's Nikkei 225 slipped 1%.
Elsewhere, Australia's S&P/ASX 200 shed 0.4%, and South Korea's Kospi added 0.5%. In the US, the S&P 500 and the Dow Jones Industrial Average both declined, with more workers applying for unemployment benefits than expected. Inflation at the wholesale level exceeded economists' forecasts, impacting expectations of further interest rate cuts by the Federal Reserve.
Traders anticipate a potential rate cut at the Fed's upcoming meeting to support the job market and maintain inflation around the 2% target. The European Central Bank and the Swiss National Bank recently cut rates, aligning with global monetary policy trends. Oil prices saw slight gains, with US benchmark crude oil at $70.16 per barrel and Brent crude at $73.53 per barrel. The US dollar strengthened against the Japanese yen and the euro.
