Global shares trade mixed as markets eye Fed decision

Global markets are experiencing a mixed trading session on Monday as investors await a potential interest rate cut by the U.S. Federal Reserve later this week. In Europe, France’s CAC 40 surged 1.2% to 7,915.30, while Germany’s DAX rose 0.6% to 23,838.03. The UK’s FTSE 100 remained relatively unchanged, edging down less than 0.1% to 9,282.51. Meanwhile, U.S. shares are poised to slightly increase, with Dow futures up 0.2% to 46,287.00 and S&P 500 futures rising nearly 0.1% to 6,650.50.

Across Asia, Hong Kong’s Hang Seng index advanced 0.2% to 26,446.56, while the Shanghai Composite dipped 0.3% to 3,860.50. Concerns are growing over China’s economy, with analysts noting that the August data do not reflect robust growth due to the impact of President Donald Trump’s trade policies.

China’s industrial production hit a 12-month low, growing at 5.2% in August, down from 5.7% in July and 6.8% in June. Retail sales also slowed, rising by 3.4%, the weakest pace since last November. Analysts believe that additional short-term stimulus measures may be necessary to support the economy amid the ongoing trade tensions.

In Australia, the S&P/ASX 200 index slipped 0.1% to 8,853.00, while South Korea’s Kospi index gained 0.4% to 3,407.31. Stock trading in Japan was closed on Monday for a national holiday.

Investors are anticipating a potential interest rate cut by the Federal Reserve at its upcoming meeting. Failure to implement the rate cut could lead to market disappointment. In energy markets, U.S. crude oil prices rose by 31 cents to $63.00 a barrel, while Brent crude, the international benchmark, increased by 27 cents to $67.26 a barrel.

In currency trading, the U.S. dollar slightly rose to 147.67 Japanese yen from 147.65 yen, while the euro remained stable at $1.1734 compared to $1.1732.

Overall, global markets are closely monitoring developments surrounding the Federal Reserve’s interest rate decision and the ongoing trade tensions between the U.S. and China. Investors are bracing for potential market volatility in the coming days.