BANGKOK (AP) — European shares opened higher Friday and Asian stocks retreated after U.S. markets closed for the National Day of Mourning for former President Jimmy Carter.
The German DAX was flat at 20,316.29, while the CAC 40 in Paris fell 0.1% to 7,486.82. In London, the FTSE fell 0.1% lower to 8,312.55.
Futures for the S&P 500 fell 0.4%, while those for the Dow Jones Industrial Average were 0.3% lower.
Markets in Asia saw a broad decline that analysts say reflects a weakening of confidence about the chances of further rate cuts from the Federal Reserve, given recent data showing unexpected strength in the US economy.
Minutes from a Dec. 17-18 meeting released this week show that Fed officials expect to scale back the pace of rate cuts this year in light of persistently high inflation and the threat of widespread rate hikes among the new President Donald Trump and other potential investors. policy changes.
“It appears that markets are at some level concerned about the risk that the Fed will keep policy much more restrictive than is conducive to maintaining unbridled risks,” Tan Jing Yi of Mizuho Bank said in a commentary.
Uncertainties about how aggressively Trump might pursue higher tariffs on China and other countries once he takes office also have investors cautious just days before the Jan. 20 inauguration.
“Increased tariffs on Chinese goods are a given, but it is unclear which other economies in the region will be targeted and whether universal tariffs are still on the table,” ANZ Research said in a report.
Attention focused on a U.S. nonfarm jobs report expected later in the day from the Department of Labor.
In Tokyo, the Nikkei 225 index lost 1.1% to 39,190.40, while South Korea’s Kospi lost 0.2% to 2,515.78.
Chinese markets extended losses, with Hong Kong’s Hang Seng down 0.9% to 19,064.29. The Shanghai Composite index fell 1.3% to 3,168.52.
In Australia, the S&P/ASX 200 lost 0.4% to 8,294.10.
Bangkok’s SET rose 0.3%, while India’s Sensex fell 0.3%. Taiwan’s Taiex fell 0.3% higher.
In the United States, the bond market remained open Thursday until the recommended close at 2 p.m. Eastern Time. Yields have remained relatively stable after a strong recent run that has roiled the stock market.
The yield on the 10-year Treasury note stood at 4.69%, after peaking at 4.70% the day before, when it approached its highest level since April. In September it was below 3.65%.
Higher interest rates hurt stocks by making it more expensive for companies and households to borrow and by drawing some investors toward bonds and away from stocks. Yields have risen as reports on the US economy have come in better than economists expected. Concerns about possible upward pressure on inflation from tariffs, taxes and other policies favored by Trump have also pushed yields higher.
In other trades early Friday, U.S. benchmark crude rose $1.12 to $75.04 a barrel. Brent crude, the international standard, rose $1.14 to $78.06 a barrel.
The US dollar fell from 158.14 yen to 157.68 Japanese yen. The euro rose from $1.0301 to $1.0303.
