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Stock markets diverged Friday as traders were disappointed by China’s latest boosts to its beleaguered economy and looked ahead to a key US Federal Reserve meeting next week.A tepid week was on course for a damp finish, with Wall Street offering a negative lead after fresh data pointing to a pick-up in inflation.Hong Kong and Shanghai both tumbled as investors shrugged at Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a drive to reignite growth in the world’s number two economy.President Xi Jinping and other key leaders said at the annual Central Economic Work Conference they would implement a “moderately loose” monetary policy, increase social financing and reduce interest rates “at the right time”.The gathering came after Beijing began unveiling in September a raft of policies to reverse a growth slump that has gripped the economy for almost two years.”We’re still not convinced that policy support will prevent the economy from slowing further next year”, said Julian Evans-Pritchard, head of China economics at research group Capital Economics.European markets fared better following interest rate cuts the day prior by the European Central Bank (ECB) and the Swiss central bank. Paris stocks rose with French President Emmanuel Macron set to name the new prime minister Friday, after days of deadlock over finding a candidate to replace the ousted Michel Barnier. Frankfurt also gained, despite the German central bank sharply downgrading its growth forecasts on Friday for 2025 and 2026 as it predicted a prolonged period of weakness for Europe’s biggest economy.London stocks edged up and the pound dropped after official data showed that the UK economy unexpectedly shrank for the second consecutive month in October.The euro was stuck around two-year lows against the dollar after ECB president Christine Lagarde warned the eurozone economy was “losing momentum”, cautioning that “the risk of greater friction in global trade could weigh on euro area growth”.All three main indexes in New York closed in the red, ahead of the Fed’s meeting next week, when it is tipped to cut borrowing costs for the third time.”While the markets still anticipate a rate cut from the Federal Reserve next week, the likelihood of a move in January has dropped,” said Patrick Munnelly, partner at broker Tickmill Group.There is growing concern over inflationary pressures of president-elect Donald Trump’s pledges to cut taxes and impose tariffs as inflation still stands above the bank’s target.Shares fell in Tokyo even as the Bank of Japan’s closely watched Tankan survey indicated a slight increase in confidence among Japan’s major manufacturers.  Seoul extended to four days a rebound from the selling sparked by South Korean President Yoon Suk Yeol’s brief martial law declaration, as the focus there turns to a second impeachment vote planned for Saturday.The advance helped the Kospi briefly rise back above the level it sat at before Yoon’s December 3 shock.- Key figures around 1100 GMT -London – FTSE 100: UP 0.1 percent at 8,319.69 pointsParis – CAC 40: UP 0.4 percent at 7,449.73Frankfurt – DAX: UP 0.4 percent at 20,499.07Tokyo – Nikkei 225: DOWN 1.0 percent at 39,470.44 (close)Hong Kong – Hang Seng Index: DOWN 2.1 percent at 19,971.24 (close)Shanghai – Composite: DOWN 2.0 percent at 3,391.88 (close)New York – Dow: DOWN 0.5 percent 43,014.12 (close)Euro/dollar: UP at $1.0488 from $1.0468 on ThursdayPound/dollar: DOWN at $1.2652 from $1.2669Dollar/yen: UP at 153.49 yen from 152.68 yen Euro/pound: UP at 82.91 pence from 82.59 penceBrent North Sea Crude: UP 1.1 percent at $74.23 per barrelWest Texas Intermediate: UP 1.2 percent at $70.86 per barrel

Markets fell Friday as China’s latest vows to boost the beleaguered economy failed to stir much excitement, while traders looked ahead to a key Federal Reserve policy meeting next week.A tepid week was on course for a damp finish, with Wall Street offering a negative lead after fresh data pointing to a pick-up in inflation.Hong Kong and Shanghai both tumbled as investors shrugged at Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a drive to reignite growth in the world’s number two economy.President Xi Jinping and other key leaders said they would implement a “moderately loose” monetary policy, increase social financing and reduce interest rates “at the right time”.The annual Central Economic Work Conference was being closely watched for signs of more stimulus, though the announcement — which included stabilising foreign trade and supporting the troubled property sector — was unable to boost sentiment.The gathering came after Beijing began unveiling in September a raft of policies to reverse a growth slump that has gripped the economy for almost two years.Julian Evans-Pritchard of Capital Economics said it remained unclear how big a boost there would be, adding that, “while we may get a near-term stimulus bounce, we’re still not convinced that policy support will prevent the economy from slowing further next year”.And strategists at Bank of America Global Research said: “We await more evidence of implementation to assess the impact of such an indicated turnaround”.Shares fell in Tokyo even as the Bank of Japan’s closely watched Tankan survey indicated a slight increase in confidence among Japan’s major manufacturers.  Sydney, Taipei, Bangkok, Jakarta and Manila also dropped while Singapore, Mumbai and Wellington edged up.Seoul reversed early losses to extend to four days a rebound from the selling sparked by South Korean President Yoon Suk Yeol’s brief martial law declaration, as the focus there turns to a second impeachment vote planned for Saturday.The advance helped the Kospi briefly rise back above the level it sat at before Yoon’s December 3 shock.All three main indexes in New York closed in the red, with investors taking to the sidelines ahead of the Fed’s Wednesday gathering, when it is tipped to cut borrowing costs for the third time.However, there is growing concern that with inflation still above the bank’s target — and president-elect Donald Trump pledging to cut taxes and impose tariffs — officials will not make as many next year as initially hoped.”There is a risk that inflationary pressures could change the central bank’s plans,” said Charu Chanana, chief investment strategist at Saxo Markets.”Recent (consumer price index) reports show that inflation is still sticky, and if Trump’s policies — like higher fiscal spending or tariffs — are enacted, inflation could re-accelerate.”This would give the Fed less room to ease, potentially leading to a hawkish surprise for markets.”The euro was stuck around two-year lows after the European Central Bank cut rates and president Christine Lagarde warned the eurozone economy was “losing momentum”, cautioning that “the risk of greater friction in global trade could weigh on euro area growth”.The currency was also being dragged by uncertainty in Germany and France following the collapse of the governments of both countries, the eurozone’s biggest economies.London was flat at the open as data showed the UK economy shrank 0.1 percent in October. Paris opened down and Frankfurt was up. – Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 39,470.44 (close)Hong Kong – Hang Seng Index: DOWN 2.1 percent at 19,971.24 (close)Shanghai – Composite: DOWN 2.0 percent at 3,391.88 (close)London – FTSE 100: FLAT at 8.311,22Euro/dollar: DOWN at $1.0462 from $1.0468 on ThursdayPound/dollar: DOWN at $1.2630 from $1.2669Dollar/yen: UP at 152.84 yen from 152.68 yen Euro/pound: UP at 82.83 pence from 82.59 penceWest Texas Intermediate: UP 0.4 percent at $70.33 per barrelBrent North Sea Crude: UP 0.4 percent at $73.67 per barrelNew York – Dow: DOWN 0.5 percent 43,014.12 (close)

Asian markets fell Friday as China’s latest vows to boost the beleaguered economy failed to stir much excitement, while traders looked ahead to a key Federal Reserve policy meeting next week.A tepid week was on course for a damp finish, with Wall Street offering a negative lead after fresh data pointing to a pick-up in inflation.Hong Kong and Shanghai both turned lower soon after the open as investors gave a shrug to Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a drive to reignite growth in the world’s number two economy.President Xi Jinping and other key leaders said they would implement a “moderately loose” monetary policy, increase social financing and reduce interest rates “at the right time”.The annual Central Economic Work Conference was being closely watched for signs of more stimulus, though the announcement — which included stabilising foreign trade and supporting the troubled property sector — was unable to boost sentiment.The gathering came after Beijing began unveiling in September a raft of policies to reverse a growth slump that has gripped the economy for almost two years.Julian Evans-Pritchard of Capital Economics said it remained unclear how big a boost there would be, adding that, “while we may get a near-term stimulus bounce, we’re still not convinced that policy support will prevent the economy from slowing further next year”.And strategists at Bank of America Global Research said: “We await more evidence of implementation to assess the impact of such an indicated turnaround”.Shares fell in Tokyo even as the Bank of Japan’s closely watched Tankan survey indicated a slight increase in confidence among Japan’s major manufacturers.  Sydney, Taipei and Manila also dropped while Singapore and Wellington edged up.Seoul also struggled following a three-day rebound from the selling sparked by South Korean President Yoon Suk Yeol’s brief martial law declaration, as the focus there turns to a second impeachment vote planned for Saturday.All three main indexes in New York closed in the red, with investors taking to the sidelines ahead of the Fed’s Wednesday gathering, when it is tipped to cut borrowing costs for the third time.However, there is growing concern that with inflation still above the bank’s target — and president-elect Donald Trump pledging to cut taxes and impose tariffs — officials will not make as many next year as initially hoped.”There is a risk that inflationary pressures could change the central bank’s plans,” said Charu Chanana, chief investment strategist at Saxo Markets.”Recent (consumer price index) reports show that inflation is still sticky, and if Trump’s policies — like higher fiscal spending or tariffs — are enacted, inflation could re-accelerate.”This would give the Fed less room to ease, potentially leading to a hawkish surprise for markets.”The euro held around two-year lows after the European Central Bank cut rates and president Christine Lagarde warned the eurozone economy was “losing momentum”, warning that “the risk of greater friction in global trade could weigh on euro area growth”.The currency was also being dragged by uncertainty in Germany and France following the collapse of the governments of both countries, the eurozone’s biggest economies.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 1.2 percent at 39,360.43 (break)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 20,118.07Shanghai – Composite: DOWN 1.1 percent at 3,425.14Euro/dollar: DOWN at $1.0467 from $1.0468 on ThursdayPound/dollar: DOWN at $1.2668 from $1.2669Dollar/yen: UP at 152.75 yen from 152.68 yen Euro/pound: UP at 82.63 from 82.59 penceWest Texas Intermediate: DOWN 0.1 percent at $69.96 per barrelBrent North Sea Crude: DOWN 0.1 percent at $73.35 per barrelNew York – Dow: DOWN 0.5 percent 43,014.12 (close)London – FTSE 100: UP 0.1 at 8,311.76 (close) 

Europe’s main stock markets were little changed Thursday despite interest rate cuts by the eurozone and Swiss central banks as policymakers warned of economic and political woes in the region and beyond.Wall Street shares pulled back a day after the tech-heavy Nasdaq topped 20,000 points for the first time.The Paris CAC 40 index ended the day flat while the Frankfurt DAX added 0.1 percent after the European Central Bank (ECB) cut its interest rates by 25 basis points, marking its third consecutive reduction and fourth this year overall.ECB President Christine Lagarde said policymakers discussed political “uncertainty” in Europe and the United States before deciding on the cut.She mentioned “political situations in some of the member states” and the US presidential election won by Donald Trump.Lagarde warned that the eurozone economy was “losing momentum” and that “the risk of greater friction in global trade could weigh on euro area growth”.Earlier, the Swiss National Bank surprised markets with a 50-basis-point reduction in its rate, citing slowing inflation and uncertainty over the impact of Trump’s economic policies and Europe’s political upheaval.The franc fell against the dollar and the euro following the announcement.With growth still weak and France and Germany in political crises there have been calls for the ECB to move faster.  Germany is heading towards early elections in February following the collapse of Chancellor Olaf Scholz’s coalition government as Europe’s biggest economy falters.In France, President Emmanuel Macron is due to appoint a new prime minister after MPs toppled the government of Michel Barnier last week.Sylvain Broyer, an economist at S&P Global Ratings, said Europe was suffering from “a real crisis of confidence whose roots run deep and go beyond economic factors”.”The ECB must react and speed up the pace of rate cuts, unless low confidence derails the nascent recovery and jeopardizes the return to price stability,” he said.- US inflation -Investors are also focused on the US Federal Reserve’s own interest rate decision next week.Consumer inflation data on Wednesday was in line with expectations as it inched slightly higher in November to 2.7 percent.But figures on Thursday showed US wholesale inflation also ticked higher in November.Nonetheless, futures markets continued to show high confidence the Fed will still cut interest rates next week. But there are concerns that measures pledged by Trump to slash taxes and regulations and ramp up tariffs could reignite price increases.In Asia, Hong Kong and Shanghai rallied amid hopes that leaders in China will unveil more help for the economy, which is struggling under the weight of weak consumer spending and a chronic property crisis.Tokyo gained more than one percent on a weaker yen.- Key figures around 2130 GMT -New York – Dow: DOWN 0.5 percent 43,014.12 (close)New York – S&P 500: DOWN 0.5 percent at 6,051.25 (close)New York – Nasdaq Composite: DOWN 0.7 percent at 19,902.84 (close)London – FTSE 100: UP 0.1 at 8,311.76 (close) Paris – CAC 40: FLAT at 7,420.94 (close)Frankfurt – DAX: UP 0.1 percent at 20,426.27 (close)Tokyo – Nikkei 225: UP 1.2 percent at 39,849.14 (close)Hong Kong – Hang Seng Index: UP 1.2 percent at 20,397.05 (close)Shanghai – Composite: UP 0.9 percent at 3,461.50 (close)Euro/dollar: DOWN at $1.0468 from $1.0496 on WednesdayPound/dollar: DOWN at $1.2669 from $1.2751Dollar/yen: UP at 152.68 yen from 152.45 yen Euro/pound: UP at 82.59 from 82.31 penceWest Texas Intermediate: DOWN 0.4 percent at $70.02 per barrelBrent North Sea Crude: DOWN 0.2 percent at $73.41 per barrelburs-jmb/dw

European stock markets rose Thursday as the Swiss central bank made a bigger-than-forecast interest rate cut before eurozone policymakers are expected to trim the bloc’s own borrowing costs again.The Swiss National Bank surprised markets with a 50-basis-point reduction in its rate, citing slowing inflation and “uncertainty” over the global economy due to future US policies and political turmoil in Europe.The franc fell against the dollar and the euro following the announcement.The European Central Bank (ECB) is widely expected to cut its interest rates by 25 basis points, marking its third consecutive reduction.However, recent worse-than-expected data has fuelled speculation that the ECB could soon deliver its own half-percentage-point cut. The decision comes “in the face of a eurozone economy which is teetering on the brink of a recession”, said Dan Coatsworth, investment analyst at AJ Bell.”The rumbling political crises in France and Germany only add to the tricky backdrop,” he added.Paris stocks edged up slightly, as France’s President Emmanuel Macron fights to appoint a new prime minister following the removal of Michel Barnier last week.Germany, meanwhile, is heading towards early elections in February following the collapse of Chancellor Olaf Scholz’s coalition government as Europe’s biggest economy falters.Investors are also focused on the US Federal Reserve’s own interest rate decision next week, with inflation data on Wednesday cemeting forecasts of another cut.On Wall Street on Wednesday, the Nasdaq ended above 20,000 points for the first time, while the S&P 500 was a whisker away from its own record.”US markets had their best day since the election, with tech stocks stealing the spotlight after inflation data practically locked in a rate cut,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. There are concerns, however, that measures pledged by US president-elect Donald Trump to slash taxes and regulations and ramp up tariffs could reignite price increase.In Asia, Hong Kong and Shanghai rallied amid hopes that leaders in China will unveil more help for the economy, which is struggling under the weight of weak consumer spending and a chronic property crisis.President Xi Jinping and other key officials were reportedly holding their Central Economic Work Conference to hash out plans to boost growth next year.Meanwhile, it emerged that economic officials in outgoing US President Joe Biden’s administration would meet their Chinese counterparts for talks on Thursday in a final effort to strengthen ties before Trump returns.Tokyo gained more than one percent on a weaker yen.Seoul’s Kospi pushed higher for a third straight day, eating further into the losses sustained in a sell-off that came in the wake of South Korean President Yoon Suk Yeol’s short-lived martial law declaration.The won continues to hover around two-year lows of 1,430 per dollar amid the uncertainty ahead of a second impeachment vote on Yoon at the weekend after the first fell short.- Key figures around 1100 GMT -London – FTSE 100: UP 0.3 at 8,324.23 pointsParis – CAC 40: UP 0.1 percent at 7,429.12 Frankfurt – DAX: UP 0.1 percent at 20,409.61Tokyo – Nikkei 225: UP 1.2 percent at 39,849.14 (close)Hong Kong – Hang Seng Index: UP 1.2 percent at 20,397.05 (close)Shanghai – Composite: UP 0.9 percent at 3,461.50 (close)New York – Dow: DOWN 0.2 percent at 44,148.56 (close)Euro/dollar: UP at $1.0500 from $1.0498 on WednesdayPound/dollar: DOWN at $1.2743 from $1.2752Dollar/yen: DOWN at 152.33 yen from 152.40 yen Euro/pound: UP at 82.40 from 82.31 penceWest Texas Intermediate: DOWN 0.1 percent at $70.24 per barrelBrent North Sea Crude: DOWN 0.1 percent at $73.46 per barrel

Equities mostly rose in Asian trade on Thursday following another record day on Wall Street fuelled by inflation data that reinforced expectations for a US interest rate cut next week, while traders also remained hopeful for more measures to stimulate China’s economy.Seoul’s Kospi pushed higher for a third straight day, eating further into the losses sustained in a sell-off that came in the wake of South Korean President Yoon Suk Yeol’s short-lived martial law declaration.Hopes that the Federal Reserve will lower borrowing costs for a third time in a row next week were bolstered Wednesday by figures showing the US consumer price index rising in line with expectations in November.While the gauge continues to sit above the central bank’s two percent target, swaps markets indicate there is a 98 percent chance policymakers will make the reduction.On Wall Street, the Nasdaq ended above 20,000 points for the first time, while the S&P 500 was a whisker away from its own record.However, analysts warned the outlook for 2025 was less clear.”Evidence in recent months suggests the decline in inflation has lost momentum while economic activity and the labour market have remained resilient,” said National Australia Bank senior forex strategist Rodrigo Catril.”These dynamics suggest that after cutting in December, the Fed looks set to sit on the sidelines for a while with an increasing risk that the coming pause won’t be a couple of months, but rather a couple of quarters.”Adding to the uncertainty is the presidency of Donald Trump, who takes back the White House next month and has pledged to slash taxes and regulations and ramp up tariffs — measures some warn could reignite prices.In Asian trade, Hong Kong and Shanghai rallied as dealers kept an eye on China amid hopes that leaders will unveil more help for the economy, which is struggling under the weight of weak consumer spending and a chronic property crisis.- Yoon stays defiant -President Xi Jinping and other key officials were reportedly holding their Central Economic Work Conference to hash out plans to boost growth next year.Officials announced on Monday their first major shift in policy for more than a decade, saying they would “implement a more active fiscal policy and an appropriately relaxed” strategy.That sparked hopes for more interest rate cuts and the freeing up of more cash for lending.Beijing has already unveiled a raft of measures to kickstart growth but observers said there was concern at the lack of concrete action.The “cautious market response in China suggests that investors are sceptical about the government’s commitment to substantial, direct financial interventions — essentially the ‘helicopter money’ that many believe is necessary to invigorate the economy”, said SPI Asset Management’s Stephen Innes.Meanwhile, it emerged that economic officials in outgoing President Joe Biden’s administration would meet their Chinese counterparts for talks on Thursday in a final effort to strengthen ties before Trump returns.Shares in Seoul jumped more than one percent as lawmakers prepare for a second impeachment vote on Yoon at the weekend after the first fell short on Saturday. The leader of his own party has urged members to attend the meeting and vote “according to their conviction and conscience”.Still, the president remained defiant and vowed to “fight with the people until the very last minute”.The won continues to hover around two-year lows of 1,430 per dollar amid the uncertainty sparked by the December 3 crisis.Among other Asian markets, Tokyo gained more than one percent on a weaker yen, while Singapore, Taipei and Bangkok also rose. There were losses in Sydney, Wellington, Mumbai and Jakarta. Manila was flat.The euro remained under pressure ahead of an expected rate cut by the European Central Bank later on Thursday, while France’s President Emmanuel Macron fights to appoint a new prime minister following the removal of Michel Barnier last week.London rose at the open, along with Paris and Frankfurt.- Key figures around 0810 GMT -Tokyo – Nikkei 225: UP 1.2 percent at 39,849.14 (close)Hong Kong – Hang Seng Index: UP 1.2 percent at 20,397.05 (close)Shanghai – Composite: UP 0.9 percent at 3,461.50 (close)London – FTSE 100: UP 0.2 percent at 8,313,95Euro/dollar: UP at $1.0520 from $1.0498 on WednesdayPound/dollar: UP at $1.2776 from $1.2752Dollar/yen: UP at 152.52 yen from 152.40 yen Euro/pound: UP at 82.38 from 82.31 penceWest Texas Intermediate: UP 0.1 percent at $70.38 per barrelBrent North Sea Crude: UP 0.2 percent at $73.69 per barrelNew York – Dow: DOWN 0.2 percent at 44,148.56 (close)

South Korea’s flag carrier Korean Air said Thursday it had bought a majority stake in rival Asiana Airlines for $1 billion, making it the effective owner four years after first expressing its takeover intentions.With the acquisition of a 63.88 percent stake, Korean Air said it had invested 1.5 trillion won in the merger, “making Asiana Airlines a subsidiary” of the company.The move will create Asia’s second-biggest airline group based on capacity, after Singapore Air, and the 10th-largest globally, according to Bloomberg News.The final phase of the tie-up follows the European Union’s approval in February, granted on the condition that the flag carrier divests Asiana’s global cargo freighter business as part of antitrust measures.The European Commission, the bloc’s powerful antitrust authority, last year expressed concerns the takeover could restrict competition on routes between Europe and South Korea.It had concerns about the impact on cargo transport services between all of Europe and South Korea.The approval was also contingent on Korean Air making “necessary assets” available to South Korean rival T’way Air to launch operations on four overlapping routes: Barcelona, Frankfurt, Paris, and Rome.With Asiana Airlines as its subsidiary, Korean Air will “strengthen the national aviation industry’s competitiveness, enhance Incheon Airport’s hub capabilities, and expand its global network reach”, the airline said in a press release.It described the merger as a “strategic milestone for Korea’s aviation industry”.Asiana Airlines will convene a shareholders meeting in January to pick a new board of directors appointed by the parent Korean Air, it said.It added that there would be no workforce restructuring during the integration, with employees in overlapping roles “reassigned within the organisation”.Korean Air currently operates a fleet of 158 aircraft with more than 20,000 employees, serving 115 cities in 40 countries.Ahead of the merger’s approval, Korean Air said in March it would sign a $13.7 billion deal with Airbus to purchase 33 A350 series aircraft to strengthen its long-term fleet operations.

Australia will force Meta and Google to pay for news shared on their platforms under a new scheme unveiled Thursday, threatening to tax them if they refuse to strike deals with local media.Traditional media companies the world over are in a battle for survival as precious advertising dollars are hoovered up online.Australia wants big tech companies to compensate local publishers for sharing news links that drive traffic to their platforms, an idea they have baulked at in the past. “It is important that digital platforms play their part. They need to support access to quality journalism that informs and strengthens our democracy,” Communications Minister Michelle Rowland said.Social media platforms with Australian revenue of more than US$160 million a year will be taxed a still-to-be-decided figure earmarked to pay for news.But they can avoid paying the tax if they voluntarily enter into commercial agreements with Australian media companies.It is the latest salvo in Australia’s efforts to reign in the tech giants. Australia last month voted for new laws that will ban under-16s from social media.It has also mooted slapping fines on companies that fail to stamp out offensive content and the spread of disinformation.

Equities swung in Asian trade Thursday following another record day on Wall Street fuelled by inflation data that reinforced expectations for a US interest rate cut next week, while traders also remained hopeful for more measures to stimulate China’s economy.Seoul’s Kospi ticked higher for a third straight day, eating further into the losses sustained in a sell-off that came in the wake of South Korean President Yoon Suk Yeol’s short-lived martial law declaration.Hopes that the Federal Reserve will lower borrowing costs for a third time in a row next week were bolstered Wednesday by figures showing the US consumer price index rising in line with expectations in November.While the gauge continues to sit above the central bank’s two percent target, swaps markets indicate there is a 98 percent chance policymakers will make the reduction.On Wall Street, the Nasdaq ended above 20,000 points for the first time, while the S&P 500 was a whisker away from its own record.However, analysts warned the outlook for 2025 was less clear.”Evidence in recent months suggest the decline in inflation has lost momentum while economic activity and the labour market have remained resilient,” said National Australia Bank senior forex strategist Rodrigo Catril.”These dynamics suggest that after cutting in December, the Fed looks set to sit on the sidelines for a while with an increasing risk that the coming pause won’t be a couple of months, but rather a couple of quarters.”Adding to the uncertainty is the presidency of Donald Trump, who takes back the White House next month and has pledged to slash taxes and regulations and ramp up tariffs — measures some warn could reignite prices.In Asian trade, Hong Kong and Shanghai edged up as dealers kept an eye on China amid hopes that leaders will unveil more help for the economy, which is struggling under the weight of weak consumer spending and a chronic property crisis.President Xi Jinping and other key officials announced on Monday their first major shift in policy for more than a decade, saying they would “implement a more active fiscal policy and an appropriately relaxed” strategy.That sparked hopes for more interest rate cuts and the freeing up of more cash for lending.Beijing has already unveiled a raft of measures to kickstart growth but observers said there was concern at the lack of concrete action.The “cautious market response in China suggests that investors are sceptical about the government’s commitment to substantial, direct financial interventions — essentially the ‘helicopter money’ that many believe is necessary to invigorate the economy”, said SPI Asset Management’s Stephen Innes.Meanwhile, it emerged that economic officials in outgoing President Joe Biden’s administration would meet their Chinese counterparts for talks on Thursday in a final effort to strengthen ties before Trump returns.Shares in Seoul rose again as lawmakers prepare for a second impeachment vote on Yoon at the weekend, after the first fell short on Saturday, with the leader of his own party urging members to attend the meeting and vote “according to their conviction and conscience”.Still, the president remained defiant and vowed to “fight with the people until the very last minute”.The won continues to hover around two-year lows of 1,430 per dollar amid the uncertainty sparked by the December 3 crisis.Among other Asian markets, Tokyo gained more than one percent on a weaker yen, while Singapore and Taipei also rose. There were losses in Sydney, Wellington, Manila and Jakarta.The euro remained under pressure ahead of an expected rate cut by th European Central Bank later on Thursday, while France’s President Emmanuel Macron fights to appoint a new prime minister following the removal of Michel Barnier last week.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 1.3 percent at 39,881.10 (break)Hong Kong – Hang Seng Index: UP 0.3 percent at 20,210.71Shanghai – Composite: UP 0.1 percent at 3,437.20Euro/dollar: UP at $1.0502 from $1.0498 on WednesdayPound/dollar: UP at $1.2763 from $1.2752Dollar/yen: DOWN at 152.20 yen from 152.40 yen Euro/pound: DOWN at 82.30 from 82.31 penceWest Texas Intermediate: DOWN 0.1 percent at $70.24 per barrelBrent North Sea Crude: FLAT at $73.51 per barrelNew York – Dow: DOWN 0.2 percent at 44,148.56 (close)London – FTSE 100: UP 0.3 percent at 8,301.62 (close)

American and European stock markets mostly rose on Wednesday after inflation data cemented expectations that the US Federal Reserve will trim interest rates next month.While the Dow fell slightly, the other two major US indices advanced, led by the tech-rich Nasdaq, which piled on almost two percent to close above 20,000 points for the first time.The consumer price index (CPI) rose to 2.7 percent last month from a year ago, up slightly from 2.6 percent in October.”With the CPI numbers broadly in line, it is likely that the Fed will not be derailed and will cut rates again next week,” Jochen Stanzl, chief market analyst at CMC Markets.”The data is not a showstopper for the current bull run on Wall Street,” he added.Ahead of the data, investors priced in an 86 percent chance the Fed will cut interest rates next week by a quarter percentage point. That rose to more than 98 percent after the CPI data was published.Stocks in Paris and Frankfurt rose ahead of the European Central Bank’s own interest rate announcement on Thursday, with analysts expecting another cut as it seeks to boost eurozone growth.Investors are also eyeing political developments in France, where officials said President Emmanuel Macron aims to name a new prime minister “within 48 hours” as he seeks to end political deadlock following the ouster of Michel Barnier.In company news, shares in German retail giant Zalando shed more than four percent on Frankfurt’s DAX index, after it acquired domestic rival About You in a deal worth around 1.1 billion euros ($1.2 billion).Shares in Zara owner Inditex slid more than six percent after a record quarterly profit for the group fell short of market estimates.Among US companies, Google parent Alphabet earned 5.5 percent as it announced the launch of Gemini 2.0, its most advanced artificial intelligence model to date. That added to gains after Google also announced Tuesday details of a breakthrough quantum chip.Shares in Shanghai rose but Hong Kong gave up an early rally to end in the red.Traders were keeping tabs on China to see if it will announce further measures to support its struggling economy as leaders were to gather Wednesday for a conference to hammer out next year’s agenda.President Xi Jinping and other top leaders on Monday announced their first major shift in policy for more than a decade, saying they would “implement a more active fiscal policy and an appropriately relaxed” strategy.Those remarks sparked hopes for more interest rate cuts and the freeing up of more cash for lending.- Key figures around 2150 GMT -New York – Dow: DOWN 0.2 percent at 44,148.56 (close)New York – S&P 500: UP 0.8 percent at 6,084.19 (close)New York – Nasdaq Composite: UP 1.8 percent at 20,034.89 (close)London – FTSE 100: UP 0.3 percent at 8,301.62 (close)Paris – CAC 40: UP 0.4 percent at 7,423.40 (close)Frankfurt – DAX: UP 0.3 percent at 20,399.16 (close)Tokyo – Nikkei 225: FLAT at 39,372.23 (close)Hong Kong – Hang Seng Index: DOWN 0.8 percent at 20,155.05 (close)Shanghai – Composite: UP 0.3 percent at 3,432.49 (close)Euro/dollar: DOWN at $1.0498 from $1.0527 on TuesdayPound/dollar: DOWN at $1.2752 from $1.2771Dollar/yen: UP at 152.40 yen from 151.95 yen Euro/pound: DOWN at 82.31 from 82.42 penceBrent North Sea Crude: UP 1.8 percent at $73.52 per barrelWest Texas Intermediate: UP 2.4 percent at $70.29 per barrelburs-jmb/mlm