BANGKOK (AP) — Shares opened higher Monday in Europe after a mixed session in Asia as investors await an interest rate decision by the Federal Reserve.
Shares rose in most markets apart from Shanghai and Seoul and U.S. futures also advanced. Oil prices fell sharply.
Switzerland’s UBS said it has completed its takeover of embattled rival Credit Suisse in a government-arranged rescue combining the country’s two largest banks to safeguard the country’s reputation as a global financial center and choke off market turmoil.
Germany's DAX jumped 1% to 16,109.01 and the CAC 40 in Paris advanced 0.9% to 7,278.89. Britain's FTSE 100 edged 0.2% higher, to 7,576.14. The future for the S&P 500 gained 0.4% while that for the Dow Jones Industrial Average was up 0.2%.
Many observers expect the Fed to stand pat given recent data showing the U.S. economy slowing. This week also brings price figures that might indicate whether the Fed is succeeding in snuffing inflation.
On Friday, the Bank of Japan is due to issue a policy statement. It has refrained from making any major changes to its minus 0.1% benchmark interest rate despite rising prices, citing a need to wait and see if the inflation is sustained.
Tokyo's benchmark Nikkei 225 added 0.5% to 32,434.00, while the Hang Seng in Hong Kong gained 0.1% to 19,404.31. In Seoul, the Kospi declined 0.5% to 2,629.35.
The Shanghai Composite index edged 0.1% lower, to 3,228.83. Shares rose in Taiwan and India but fell in Bangkok. Australian markets were closed for a holiday.
Stocks inched higher Friday, with the S&P 500 up 0.1%, logging a fourth straight winning week. The Dow Jones Industrial Average added 0.1% to 33,876.78, and the Nasdaq composite gained 0.2% to 13,259.14.
Tesla led the market, rallying 4.1% after announcing General Motors electric vehicles will be able to use much of its extensive charging network beginning early next year. GM rose 1.1%.
Energy stocks fell along with the price of crude oil.
On Monday, U.S. benchmark crude sank $1.97 to $68.20 per barrel in electronic trading on the New York Mercantile Exchange. It lost $1.12 on Friday to $70.17 per barrel.
Brent crude oil gave up $1.88 to $73.91 per barrel.
The S&P 500 index's return to a new bull market last week reflects growing hopes the economy might avoid a severe recession despite the sharp rise in interest rates over the past year as the Fed has strived to bring inflation under control.
“The S&P 500 is now at levels it has not seen since last September. The NASDAQ is up 26.68% year-to-date -– not bad for an economy that seems poised to slip into recession later this year,” ING Economics said in a commentary.
The highest rates since 2007 have helped inflation come down some, but it's still above everyone's comfort level.
In currency trading, the dollar slipped to 139.22 Japanese yen from 139.39 yen. The euro rose to $1.0787 from $1.0750.
Elaine Kurtenbach, The Associated Press
