This Thursday, Oct. 2, 2014, file photo, shows a Wall Street sign adjacent to the New York Stock Exchange. AP
MANILA, Philippines — Global shares meandered Thursday amid uncertainty over the world outlook in general and the Japanese economy in particular, following a decision by Prime Minister Shinzo Abe to postpone a sales tax hike to avoid shocks to the country’s faltering recovery.
KEEPING SCORE: Britain’s FTSE 100 rose 0.4 percent to 6,216.16 in early trading. France’s CAC 40 was 0.1 percent up at 4,478.86. Germany’s DAX edged up 0.1 percent at 10,211.79. U.S. Futures augured a positive opening on Wall Street, with Dow futures up 0.3 percent and S&P futures up 0.4 percent.
ANALYST VIEWPOINT: “Despite appearances of calm in equities, markets continue to be plagued by uncertainty with magnified volatility and divergence in currencies,” Mizuho Bank said in a market commentary. It said the delay in raising Japan’s sales tax may have “induced anxiety over fiscal sustainability and underscored uncertainty in the economy.”
OPEC MEETING: Investors are closely watching for the outcome of a top-level meeting of the Organization of the Petroleum Exporting Countries on Thursday in Vienna. Analysts say oil ministers from the 13-nation oil cartel are unlikely to reach any agreement on production targets or production caps. After touching a 13-year low early this year, the price of oil has gained nearly 90 percent since January.
EYEING EUROPE: The European Central Bank is expected to stress its commitment to raise inflation and help the economy Thursday, but not to decide on any new stimulus measures. The chief monetary authority for the 19-country eurozone is battling to raise inflation, which at minus 0.1 percent is considered too low. It is expected to keep its 1.74 trillion euro ($1.94 trillion) stimulus package unchanged at Thursday’s meeting and could raise its forecasts for inflation thanks to the recent rise in oil prices.
ASIA’S DAY: Japan’s Nikkei 225 fell 2.3 percent to 16,562.55. Hong Kong’s Hang Seng index rose 0.5 percent at 20,859.22. The Shanghai Composite Index was up 0.4 percent to 2,925.23. Australia’s S&P/ASX 200 lost 0.8 percent to 5,278.90, while South Korea’s KOSPI was 0.1 percent higher at 1,985.11. Southeast Asian markets were mixed.
OIL: U.S. crude gained 19 cents to $49.20 a barrel in electronic trading on the New York Mercantile Exchange. It closed 9 cents lower at $49.01 on Wednesday. Brent crude, which is used to price international oils, was up 20 cents at $49.92. On Wednesday, it slid 17 cents to close at $49.72 a barrel.
CURRENCIES: The dollar fell to 109.05 yen from 109.48 in the previous day’s trading. The euro rose to $1.1203 from $1.1188. TVJ