Europe Shares Slip, Asian Shares Higher06/09 05:57
European shares declined Friday after a day of gains in Asia following Wall
Street's return to bull market status.
TOKYO (AP) -- European shares declined Friday after a day of gains in Asia
following Wall Street's return to bull market status.
France's CAC 40 lost 0.4% to 7,198.50 while Germany's DAX slipped 0.3% to
16,886.40. Britain's FTSE 100 shed 0.4% to 7,572.16. The future for the Dow
Jones Industrial Average shed 0.2% and the contract for the S&P 500 future was
Asian benchmarks rose Friday, tracking Wall Street's gains. Japan's
benchmark Nikkei 225 surged 2.0% to finish at 32,265.17. Australia's S&P/ASX
200 gained 0.3% to 7,122.50. South Korea's Kospi added 1.2% to 2,641.16. Hong
Kong's Hang Seng advanced 0.5% to 19,389.95. The Shanghai Composite rose 0.6%
Still, Stephen Innes, managing partner at SPI Asset Management, said worries
persist over the weakness of China's recovery from pandemic restrictions
"China's post-reopening recovery has slowed incredibly in the second
quarter," Innes said in a commentary. "Now people are wondering if we are near
rock bottom or not."
On Thursday, the S&P 500 gained 0.6%. The Dow gained 0.5% and the Nasdaq
With the S&P 500 rising 20% above the bottom it hit in October, Wall
Street's main measure of health has climbed out of a painful bear market, which
saw it drop 25.4% over roughly nine months.
The arrival of a bull market also doesn't mean the stock market has made it
back to its prior heights. A 25% drop for the S&P 500 requires a 33% rally just
to get back to even.
Declaring the end of a bear market may seem arbitrary, and different market
watchers use different definitions, but it offers a useful marker for
investors. It also provides a reminder that investors who can hold on through
downturns nearly always eventually have made back all their losses in S&P 500
Even though it was driven by so many extremes -- the worst inflation in
generations and the fastest hikes to interest rates in decades, for example--
this most recent bear market lasted only about nine months. It stretched from
Jan. 3, 2022, when the S&P 500 set a record, until Oct. 12, when it hit bottom.
That's shorter than the typical bear market, and it also resulted in a
shallower loss than average, according to data from S&P Dow Jones Indices.
The economy has avoided a recession so far because of a remarkably solid job
market and spending by consumers. Hopes also are rising that the Fed may soon
stop hiking interest rates.
The broad expectation among traders is that the Fed will hold rates steady
next week, which would mark the first meeting where it hasn't raised rates in
more than a year. While it may hike rates one more time in July, the hope on
Wall Street is that it won't go beyond that. Inflation has been coming down
from its peak last summer.
In energy trading, benchmark U.S. crude added 2 cents to $71.31 a barrel in
electronic trading on the New York Mercantile Exchange. It shed $1.24 to
$$71.29 a barrel on Thursday. Brent crude, the international standard, picked
up 4 cents to $76.00 a barrel.
In currency trading, the U.S. dollar edged up to 139.62 Japanese yen from
138.90 yen. The euro fell to $1.0760 from $1.0783.