Stock market today: World shares are mixed, Chinese markets surge, after latest retreat on Wall St

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Shares in Europe have opened mostly lower after markets ended mixed in Asia following a broad retreat on Wall Street driven by worries over interest rates.

Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Sept. 22, 2023. Asian shares were mixed on Friday after another slump on Wall Street driven by expectations that U.S. interest rates will stay high well into next year.

The future for the S&P 500 edged 0.1% higher while that for the Dow industrials was virtually unchanged. On Thursday, the S&P 500 lost 1.6% for its worst day since March. The Dow Jones Industrial Average dropped 1.1% and the Nasdaq composite lost 1.8%. The report could not be immediately confirmed. Local media cited the Bloomberg report, which comes as capital outflows have increased amid uncertainty over the outlook for the Chinese economy and for foreign investment in the communist-ruled country.

Tokyo’s Nikkei 225 fell 0.5% to 32,402.41 as Japan’s central bank kept its benchmark interest rate at minus 0.1%, as expected. In a statement, it pledged flexibility in its policies. for the last fiscal year. It was the first time the nation’s books were balanced in 15 years, with officials citing low unemployment and high prices for the country’s commodities, including iron ore, coal and gas.That followed a drop of 0.9% from Wednesday afterit may cut interest rates next year by just half of what it had earlier predicted. The Fed has already hiked its main interest rate to levels unseen since 2001, which helps slow inflation but at the cost of hurting investment prices.

Stock prices tend to fall when rates rise because stocks are riskier investments. Why chance their big swings when Treasurys are paying higher interest?

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