Donald Trump and Xi Jinping are due to meet on the sidelines of the APEC summit in South Korea next week (Brendan Smialowski) <\/p>\n
Stock markets broadly advanced Friday after US inflation data bolstered expectations that the Federal Reserve would again cut interest rates next week, with fresh optimism over US-China trade relations further boosting confidence.<\/p>\n
After solid gains on Asian markets, European indexes showed more modest gains while Wall Street advanced strongly.<\/p>\n
Investors had keenly awaited a September reading on US inflation, delayed by weeks because of the government shut down over a budget impasse, for guidance on further Fed rate cuts.<\/p>\n
The core consumer price index increase, which strips out food and petrol prices, came in below expectations at 3.0 percent, the Labor Department said. <\/p>\n
Although above the Fed’s inflation target of two percent, the reading confirmed to traders that officials are more worried about a softening labour market — cementing expectations of another 25 basis point cut next week.<\/p>\n
“It is the jobs market that is becoming the more pressing issue for the Fed, with a clear chance that the ‘low hire, low fire’ economy becomes a ‘no hire, let’s fire’ story,” ING economists said in a research note.<\/p>\n
“We continue to look for a 25 basis point rate cut next week, with a further 25 basis point move in December and 50 basis points of cuts in early 2026,” they wrote.<\/p>\n
Investors also welcomed a White House confirmation that President Donald Trump would meet China’s Xi Jinping next week, stoking optimism for a cooling of trade tensions between the economic superpowers.<\/p>\n
“News on trade is supporting risk sentiment across the board into the weekend,” said Neil Wilson, UK investor strategist at Saxo Markets.<\/p>\n
“But given this is Trump and brinkmanship goes hand in glove with showmanship, talks with Xi could go either way.<\/p>\n
“And indeed the trade picture is not so optimistic everywhere we look. The Canadian dollar\u00a0fell after Trump said\u00a0he would halt all trade negotiations with the country,” Wilson noted.<\/p>\n
In Europe, encouraging data on business activity in the eurozone and Britain gave a slight lift but traders said many investors were booking profits heading into the weekend.<\/p>\n
The Paris CAC 40 index in particular was pulled down by selling of luxury conglomerate Kering, after the stock soared this week on better-than-expected earnings and the sale of its beauty division to L’Oreal.<\/p>\n
Oil futures rose further after Washington imposed sanctions on two Russian energy giants in a bid to force Moscow into talks to end the Ukraine war.<\/p>\n
Analysts said the sanctions would sharply reduce supplies to countries that had continued to buy Russian oil, forcing them to turn to other suppliers.<\/p>\n
– Key figures at around 1545 GMT –<\/p>\n
New York – Dow: UP 1.2 percent at 47,272.07 points<\/p>\n
New York: S&P 500: UP 1.0 percent at 6,882.52<\/p>\n
New York: Nasdaq: UP 1.2 percent at 23,218.22<\/p>\n
London – FTSE 100: UP 0.7 percent at 9,645.62 (close)<\/p>\n
Paris – CAC 40: DOWN 0.2 percent at 8,225.63 (close)<\/p>\n
Frankfurt – DAX: UP 0.1 percent\u00a0at 24,239.89 (close)<\/p>\n
Tokyo – Nikkei 225: UP 1.4 percent at 49,299.65 (close)<\/p>\n
Hong Kong – Hang Seng Index: UP 0.7 percent at 25,160.15 (close)<\/p>\n
Shanghai – Composite: UP 0.7 percent at 3,950.31 (close)<\/p>\n
Euro\/dollar: UP at $1.1627 from $1.1615 on Thursday<\/p>\n
Pound\/dollar: DOWN at $1.3296 from $1.3323<\/p>\n
Dollar\/yen: UP at 152.85 from 152.60 yen<\/p>\n
Euro\/pound: UP at 87.43 pence from 87.18 pence<\/p>\n
Brent North Sea Crude: UP 1.0\u00a0percent at $66.64 per barrel<\/p>\n
West Texas Intermediate: UP 0.9 percent at $62.32 per barrel<\/p>\n
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