Stock market today: Global shares mostly rise as attention turns to earnings, economies

By YURI KAGEYAMA
AP Business Writer

TOKYO (AP) — Global shares mostly rose Tuesday as markets shift their attention from the U.S. Federal Reserve to earnings and economic reports.

France’s CAC 40 rose 0.4% in early trading to 7,353.98. Germany’s DAX added nearly 0.5% to 15,866.60. Britain’s FTSE 100 surged 1.6% to 7,456.28. U.S. shares were set to drift higher with Dow futures up less than 0.1% at 34,604.00. S&P 500 futures rose nearly 0.1% to 4,445.50.

Asian markets got a perk from signs China-U.S. relations may be improving, as the nations agreed to work together to smooth out economic relations, including business and trade.

“This sounds more like the kind of pragmatic and decisive breakthrough that is required. The proof will be in the pudding and only time will tell, but markets are correct to respond favorably to these developments,” said Clifford Bennett, chief economist at ACY Securities.

U.S. Commerce Secretary Gina Raimondo said she and her Chinese counterpart agreed Monday to exchange information on U.S. export controls and set up a group to discuss other commercial issues. That signals possible hopes about bilateral communication, but various conflicts remain, including over technology, security and human rights.

Japan’s benchmark Nikkei 225 edged up 0.2% to finish at 32,226.97.

Toyota shares dropped after all its auto assembly lines at its plants in Japan, or 28 lines in 14 plants, were shut down over a problem in its computer system that deals with incoming auto parts. Toyota stock finished 0.2% lower.

Toyota spokeswoman Sawako Takeda said the company does not think the problem is from a cyberattack, but the cause was still under investigation. It’s unclear when the lines would be back up. Toyota declined to specify which models would be affected by the stoppages.

Australia’s S&P/ASX 200 added 0.7% to 7,210.50. South Korea’s Kospi edged up 0.3% to 2,552.16. Hong Kong’s Hang Seng jumped 2.0% to 18,484.03, while the Shanghai Composite gained 1.2% to 3,135.89.

Investors have a busy week ahead full of economic reports that could shed more light on whether the job market remains hot and inflation is still cooling. The latest data could provide more clues about whether the Fed is likely to hold interest rates steady or raise them again before the year closes.

Wall Street will get an update Tuesday on consumer confidence, which jumped sharply in July and is expected to remain strong in August.

The government will issue its July report on job openings on Tuesday and its broader jobs report for August on Friday. The job market is being closely watched because it has remained strong amid high inflation.

Investors and economists will be focusing closely on the government’s latest inflation update on Thursday. The report on personal consumption and expenditures is the Fed’s preferred measure as it tries to rein inflation back to 2%.

The central bank has already raised its main interest rate to the highest level since 2001 in its drive to grind down high inflation. That was up from virtually zero early last year. The Fed held rates steady at its last meeting, but hasn’t ruled out future rate hikes to fight persistent inflation.

Wall Street is betting that the Fed will hold rates steady again at its September meeting, according to CME’s FedWatch tool. Bets are nearly evenly split, though, on whether it will raise rates one more time before 2023 closes.

In energy trading, benchmark U.S. crude rose 55 cents to $80.65 a barrel. Brent crude, the international standard, added 59 cents to $85.01 a barrel.

In currency trading, the U.S. dollar inched up to 146.62 Japanese yen from 146.54 yen. The euro cost $1.0812, down from $1.0823.