TOKYO — Global stock markets, including Germany, Japan and South Korea, were closed on Wednesday to mark the end of the year and the New Year holiday, while trading was mixed on those stock exchanges that remained open.
The French CAC 40 index lost 0.5% in early trading to 8,130.14 points, while the British FTSE 100 index fell by 0.2% to 9,923.59 points.
Earlier in Asia, the Hang Seng Index fell 0.9% to 25,630.54, while the Shanghai Composite Index rose 0.1% to 3,968.84. Taiwan’s Taiex index jumped 0.9% to 28,963.60 points. In Australia, Sydney S&The P/ASX 200 index fell less than 0.1% to 8,714.30.
Trading in Tokyo was scheduled to close for the New Year holiday on Thursday and Friday, and is scheduled to reopen on Monday. In South Korea, trading was scheduled to close on Thursday.
Trading will remain open Wednesday on Wall Street but will close on Thursday.
In energy trading, US crude fell 16 cents to $57.79 a barrel. The price of Brent crude, the international standard, fell 16 cents to $61.176 a barrel.
The continuing impact of the large-scale US-led trade war threatens to add further fuel to US inflation. The Federal Reserve can lower interest rates to help the economy cope with a slowing labor market. But this could add more fuel to inflation, which remains solidly above the Fed’s 2% target.
The Fed has signaled more caution moving forward. December meeting minutes They reflect divisions within the central bank as it deals with uncertainty about threats to the economy.
Wall Street is betting that the Fed will keep interest rates steady at its next meeting in January.
Sung Won Son, a professor of finance and economics at Loyola Marymount University, believes that uncertainty is hanging over global markets due to inflation, labor shortages and questions about where interest rates could go.
“Central banks must move cautiously, and financial markets are likely to see continued volatility as expectations shift,” he said.
“For businesses, investors and policymakers alike, flexibility, risk management and close attention to economic signals will be essential in navigating the challenges ahead.”
In currency trading, the US dollar rose to 156.55 Japanese yen from 156.36 yen. The price of the euro reached $1.1727, down from $1.1744.
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AP Business Writer Damian J. Trouse contributed to this report.