AP

World shares mostly higher ahead of China GDP data

Jan 15, 2023, 6:55 AM | Updated: Jan 16, 2023, 2:52 am

A person wearing a protective mask rides a bicycle in the rain near an electronic stock board showi...

A person wearing a protective mask rides a bicycle in the rain near an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Jan. 16, 2023, in Tokyo. Shares were mostly higher Monday in Asia after Wall Street ended last week on a high note. (AP Photo/Eugene Hoshiko)

(AP Photo/Eugene Hoshiko)

BANGKOK (AP) — Shares were mostly higher in Europe and Asia on Monday ahead of China’s release of economic growth figures and a policy update this week from Japan’s central bank.

Oil prices declined.

Germany’s DAX edged 0.1% higher to 15,101.73 and the CAC40 in Paris was nearly unchanged at 7,022.46. Britain’s FTSE was up 0.1% at 7,851.93. The future for the S&P 500 lost 0.5% while that for the Dow Jones Industrial Average slid 0.3%.

China was due to release a slew of economic data on Tuesday, including its GDP for the last quarter. Economists estimate that the world’s second-largest economy slowed further in October-December with a sharp rise in COVID-19 outbreaks as the government reversed course and loosened its rigorous pandemic controls.

On Wednesday, Japan’s central bank is due to provide an update on monetary policy as expectations build that it might opt to let yields on long-term government bonds rise further even if it does not change its minus 0.1% benchmark interest rate. The Bank of Japan’s decision last month to let the yield on 10-year bonds fluctuate in a wider range shook world markets.

In Asian trading Monday, Tokyo’s Nikkei 225 lost 1.1% to 25,822.32. The Hang Seng in Hong Kong gained less than 0.1% to 21,746.72 and the Kospi in Seoul added 0.6% to 2,399.86. The Shanghai Composite index added 1% to 3,227.59.

Australia’s S&P/ASX 200 climbed 0.8% to 7,388.20. Taiwan advanced 0.7% while Mumbai’s Sensex lost 0.3%.

Bangkok’s SET index gained 0.2% on forecasts for a turnaround for the economy, which has been battered by the pandemic.

The year has begun with optimism that cooling inflation could lead the Federal Reserve to ease off soon on sharp interest rate hikes that slow the economy and risk causing a recession. They also hurt investment prices.

Slowing segments of the economy and still-high inflation are dragging on profits for companies, which are one of the main levers that set stock prices. Friday marked the first big day for companies in the the S&P 500 to show how they fared during the final three months of 2022, with a bevy of banks at the head of the line.

One big worry on Wall Street is that S&P 500 companies may report a drop in profits for the fourth quarter from a year earlier.

If the economy does fall into a recession, as many investors expect, sharper drops for profits may be set for 2023. That’s why the forecasts for upcoming earnings that CEOs give this reporting season may be even more important than their latest results.

The Federal Reserve has been intent on such numbers staying low. Otherwise, it could cause a vicious cycle that would only worsen inflation. Consumers could start accelerating their purchases in hopes of getting ahead of higher prices, for example, which would only push prices higher.

In other trading Monday, U.S. benchmark crude oil lost 23 cents to $79.63 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the pricing standard for international trading, gave up 34 cents to $84.94 per barrel in London.

The dollar was trading at 128.42 Japanese yen, down from 127.87 yen. The euro bought $1.0831, barely changed from $1.0832.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

jerry west...

Tim Reynolds, The Associated Press

Jerry West, a 3-time Hall of Fame selection and the NBA logo, dies at 86

Jerry West, a three-time Basketball Hall of Fame inductee whose silhouette is considered to be the basis of the NBA logo, died Wednesday morning.

4 hours ago

Photo: Construction vehicles are parked outside of the Station U & O building on Tuesday, June 11, ...

Haleluya Hadero, The Associated Press

Amazon adds $1.4B to affordable housing fund for regions where it has corporate offices

Amazon is adding $1.4B to a fund for building more affordable housing in regions where the company has major corporate offices.

18 hours ago

hunter biden...

Randall Chase and the Associated Press

Hunter Biden convicted of all 3 felony charges in federal gun trial

Hunter Biden has been convicted of all three felony charges related to the purchase of a revolver in 2018, but no sentencing date was set.

1 day ago

Photo: A Bremerton man who made 20 "swatting" calls around the U.S. and in Canada, prompting real e...

Associated Press

Bremerton man sentenced for 20 ‘swatting’ calls of false threats in US, Canada

A Bremerton man who made 20 "swatting" calls around the U.S. and in Canada, prompting real emergency responses, has been sentenced.

2 days ago

Image: U.S. Secretary of Defense Lloyd Austin, left, speaks with Ukraine's President Volodymyr Zele...

Associated Press

Ukraine uses US weapons to strike inside Russia, a Western official tells AP

Ukraine has used U.S weapons to strike inside Russia in recent days, according to a Western official familiar with the matter told the AP.

7 days ago

boeing nasa...

Marcia Dunn, The Associated Press

Boeing launches NASA astronauts for the first time after years of delays

Boeing launched astronauts for the first time Wednesday, belatedly joining SpaceX as a second taxi service for NASA.

7 days ago

World shares mostly higher ahead of China GDP data