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World shares up ahead of US inflation update, OPEC+ meeting

OPEC+

The U.S. government is due to release its October data on the Federal Reserve’s preferred measure of inflation

World shares were mostly up Thursday ahead of an update on U.S. consumer inflation and OPEC+ meeting in Vienna.

U.S. futures gained and oil prices also rose.

Germany’s DAX rose 0.1 per cent to 16,189.89 and the CAC 40 in Paris also added 0.1 per cent to 7,277.03. Britain’s FTSE 100 gained 0.3 per cent to 7,448.08. The future for the S&P 500 added 0.1 per cent and that for the Dow Jones Industrial Average was 0.4 per cent higher.

Later Thursday, the U.S. government is set to release its October data on the Fed’s preferred measure of inflation. Economists expect that measure to continue easing, as it has been since the middle of last year. The Fed is expected to keep its benchmark interest rate steady when it meets in December and to finally begin cutting rates down if inflation stays under control.

The prospect of a potential lowering of interest rates has eased upward pressure on the U.S. dollar, allowing currencies such as the Japanese yen to rise. That could ease inflationary pressures that have cast the Bank of Japan’s longstanding lax monetary policy into question.

In Asia, Tokyo’s Nikkei 225 added 0.5 per cent on Thursday to 33,486.89.

The Hang Seng in Hong Kong was 0.2 per cent higher at 17,030.49. The Shanghai Composite index gained 0.3 per cent to 3,029.67.

An official survey of Chinese factory managers showed manufacturing activity declined in November, suggesting further weakness in the world’s second-largest economy despite recent signs of improvement.

The latest surveys suggest that the economy continued to lose steam in November. Nevertheless, they may be overstating the extent of slowdown due to sentiment effects, Sheana Yue of Capital Economics said in a commentary.

South Korea’s Kospi added 0.6 per cent to 2,535.29. In Australia, the S&P/ASX 200 jumped 0.7 per cent to 7,087.30. In Bangkok, the SET dropped 0.7 per cent. India’s Sensex added 0.2 per cent and Taiwan’s Taiex rose 0.4 per cent.

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