Shares in Europe and Asia dipped on Friday following strong reports on the U.S. economy, which raised concerns about high interest rates. U.S. futures saw modest gains, while oil prices decreased.
Early in European trading, Germany’s DAX fell by 0.6% to 18,638.00, the CAC 40 in Paris dropped by 0.4% to 8,071.23, and Britain’s FTSE 100 shed 0.5% to 8,301.27.
Meanwhile, futures for the S&P 500 and the Dow Jones Industrial Average edged up by 0.1%.
Japan’s Nikkei 225 index lost 1.2% to 38,646.11 after the government reported lower than expected core inflation of 2.2% in April. Analysts suggested this may reduce pressure on the Bank of Japan to raise interest rates.
In Hong Kong, the Hang Seng fell by 1.5% to 18,590.33, while the Shanghai Composite index dropped by 0.9% to 3,088.87.
The rally in property shares in response to new measures to support the housing industry was short-lived as doubts arose about its effectiveness in resolving the housing crisis. Shares of major developers like China Vanke and Shimao Group Holdings fell significantly.
In South Korea, the Kospi declined by 1.3%, and in Australia, the S&P/ASX 200 shed 1.1%. Taiwan’s Taiex slipped by 0.2% after reaching a record high on Thursday.
On Thursday, U.S. stocks saw declines due to strong economic reports fueling concerns about high interest rates. The S&P 500 fell by 0.7%, the Dow Jones Industrial Average dropped by 1.5%, and the Nasdaq composite slipped by 0.4%.
Reports indicated rapid business activity growth in the U.S. and a stable job market despite high interest rates. The Federal Reserve is attempting to manage the economy by keeping rates high to control inflation without causing a recession.
In other news, the Justice Department accused Live Nation Entertainment of running an illegal monopoly, causing its stock to plummet by 7.8%.
In early trading on Friday, U.S. benchmark crude oil slipped to $76.68 per barrel, while Brent crude fell to $81.21 per barrel. The U.S. dollar rose against the Japanese yen and the euro.
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