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Global Stocks Mixed on EU Inflation    09/30 05:18

   Global stocks were mixed Friday after inflation in 19 countries that use 
Europe's euro currency spiked to a record and Chinese factory activity weakened.

   BEIJING (AP) -- Global stocks were mixed Friday after inflation in 19 
countries that use Europe's euro currency spiked to a record and Chinese 
factory activity weakened.

   London and Frankfurt opened higher. Shanghai and Tokyo declined while Hong 
Kong advanced.

   Wall Street futures rebounded after the benchmark S&P 500 index fell 
Thursday to its lowest level in almost two years. Oil prices edged higher.

   Inflation in Germany, France and other euro zone countries accelerated to 
10% in September from the previous month's 9.1%, the statistics agency Eurostat 
reported. That was the highest since record keeping for the euro began in 1997.

   Investors increasingly worry the global economy might tip into recession 
following aggressive interest rate hikes this year by the U.S. Fed and central 
banks in Europe and Asia to cool inflation that is at multi-decade highs.

   Markets slid this week after British Prime Minister Liz Truss announced 
plans for tax cuts that investors worry will push inflation higher. Meanwhile, 
global export demand is weakening and Russia's attack on Ukraine has disrupted 
oil and gas markets.

   "We'd be inclined to argue that we haven't yet seen the bottom," ING 
economists said in a report.

   On Thursday, German Chancellor Olaf Scholz said the world's fourth-biggest 
economy faces a "double whammy" from inflation and surging energy prices.

   In early trading, the FTSE 100 in London rose 0.7% to 6,929.43 and 
Frankfurt's DAX advanced 0.7% to 12,064.73. The CAC 40 in Paris added 0.6% to 
5,708.42.

   On Wall Street, the S&P 500 future was 0.6% higher. That for the Dow Jones 
Industrial Average was up 0.4%.

   On Thursday, the S&P 500 fell 2.1% to its lowest level in almost two years 
after strong U.S. jobs data reinforced expectations the Federal Reserve will 
stick to plans for more interest rate hikes.

   The Dow slid 1.5% and the Nasdaq composite lost 2.8%.

   In Asia, the Shanghai Composite Index fell 0.6% to 3,024.39 after surveys of 
manufacturers showed factory production, new export orders and manufacturing 
employment declined in September.

   The Nikkei 225 in Tokyo fell 1.8% to 25,937.21 and the Hang Seng in Hong 
Kong gained 0.5% to 17,257.08. The Kospi in Seoul lost 0.7% to 2,155.49.

   Sydney's S&P ASX 200 sank 1.2% to 6,474.20 while India's Sensex advanced 
1.8% to 57,421.45. New Zealand and Southeast Asian markets declined.

   Stock markets and the value of the British pound rebounded Wednesday after 
the Bank of England said it would buy government bonds to support their price. 
But markets resumed their slide Thursday after Truss shrugged off criticism and 
defended her tax-cut plan despite a plea from the International Monetary Fund 
to reverse course.

   The S&P 500 is on track to end September with an 8% loss for the month. It 
is down more than 20% for the year as investors wait for a break in inflation 
that has prompted the Fed to raise interest rates five times.

   The yield on a two-year U.S. Treasury, or the difference between its market 
price and the payout at maturity, widened to 4.2% on Thursday from Wednesday's 
4.14%.

   Stronger-than-expected U.S. employment data Thursday reinforced expectations 
the Fed will feel comfortable sticking to plans to raise interest rates further 
and keep them elevated through next year.

   In China, surveys of manufacturers by business news magazine Caixin and an 
official industry group found production and new export orders declined. That 
was in line with expectations that a Chinese manufacturing boom would fade due 
to weak global demand.

   "The downturn in external demand looks set to deepen," Zichun Huang of 
Capital Economics said in a report.

   In energy markets, benchmark U.S. crude lost 49 cents to $81.72 per barrel 
in electronic trading on the New York Mercantile Exchange. The contract fell 92 
cents Thursday to $81.23. Brent crude, used to price international oils, shed 
58 cents to $87.76 per barrel in London. It lost 83 cents the previous session 
to $88.49.

   The dollar edged down to 144.40 yen from Thursday's 144.43 yen. The euro 
rose to 98.16 cents from 97.90 cents.

 
 
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