Global shares showed a mixed performance on Wednesday following a slump on Wall Street, despite positive reports on the U.S. jobs market and business activity. The future for the S&P 500 rose by 0.2%, while the Dow Jones Industrial Average increased by 0.1%.
European markets saw modest gains, with Germany's DAX and France's CAC 40 both edging up by 0.1%. Meanwhile, Britain's FTSE 100 remained flat.
In Asian trading, Japan's Nikkei 225 lost 0.3%, while Hong Kong's Hang Seng dropped by 0.9%. The Shanghai Composite index remained nearly unchanged. Notably, shares of Tencent and CATL, a leading EV battery maker, faced declines after being linked to China's military by the U.S. Defense Department.
South Korea's Kospi surged by 1.2%, and Australia's S&P/ASX 200 advanced by 0.8%.
The previous day, U.S. stocks experienced declines as bond yields rose post the release of positive economic reports. The reports indicated a higher number of job openings and faster growth in business activity than expected, easing concerns of a looming recession.
However, the strong economy could lead to inflationary pressures, potentially reducing the likelihood of further interest rate cuts by the Federal Reserve. The Fed, which had initiated rate cuts in September to stimulate the economy, hinted at a slowdown in easing measures.
Concerns over inflation were further fueled by the threat of tariffs from President-elect Donald Trump. The Institute for Supply Management's report on U.S. services industries highlighted an acceleration in price increases in December.
Looking ahead, economists anticipate a slowdown in overall hiring as the U.S. jobs market update is expected on Friday. Projections suggest an increase of 156,500 jobs in December.
In energy trading, benchmark U.S. crude rose to $75.18 a barrel, while Brent crude climbed to $77.79 a barrel. The euro weakened against the dollar, trading at $1.0326.
