Global Markets Mixed Before Fed Chair Speech

TOKYO (AP) — Global stock markets exhibited mixed results on Friday as investors awaited a pivotal speech from Federal Reserve Chair Jerome Powell, which is anticipated to provide insights into the Fed's potential interest rate cuts. S&P 500 futures increased by 0.4% to 5,614.75, while Hong Kong’s Hang Seng index dipped nearly 0.2% to 17,612.10. Conversely, the Shanghai Composite saw a slight gain of 0.2%, reaching 2,854.37. Attention is also focused on Japan's monetary policy, particularly following the country's recent shift from negative interest rates, which had been in place until March, to a rate hike in July. Japan's economy has struggled with deflation for years, and the recent changes in interest rates are being closely monitored by investors. The mixed signals from the U.S. economy, characterized by a rise in unemployment benefit claims and uneven business activity, have contributed to market volatility. The Federal Reserve has raised its main interest rate to the highest level in over two decades in an effort to combat inflation. With inflation showing signs of slowing, many analysts expect the Fed to announce interest rate cuts at its upcoming September meeting, marking the first reduction since the economic downturn triggered by the COVID-19 pandemic in 2020. However, there are concerns that investor expectations for these cuts may be overly optimistic. In energy markets, benchmark U.S. crude oil prices rose by 47 cents to $73.48 a barrel, while the euro traded at $1.1126, up from $1.1115.