NEW YORK, United States — Global stocks were mixed Thursday as Europe geared up for key elections, the United States awaited influential inflation data and a presidential debate, and Japan contemplated measures to strengthen the yen.
The Japanese currency scratched out only a tiny gain against the dollar after hitting a 38-year low Wednesday, putting investors on alert for a possible intervention by Japanese authorities.
Investors were meanwhile awaiting the outcomes of French and British general elections due over the next week.
Wall Street stocks finished modestly higher after a choppy session, with investors looking ahead to key inflation data as well as Thursday night’s presidential debate featuring US President Joe Biden and his predecessor Donald Trump.
The debate “has imbued the market with a bit of a wait-and-see attitude,” said Briefing.com analyst Patrick O’Hare.
READ: Trump, Biden gird for historic US presidential debate
Friday sees the release of the PCE index, the US Federal Reserve’s preferred measure of inflation.
“Should this point towards a further slowdown in price growth then the final day of June trading might go the same way as May’s, which saw a strong rally,” said Chris Beauchamp, chief market analyst at online trading platform IG.
September rate cut hopes
“A softer PCE reading could renew hopes of a September rate cut, which have taken a knock of late,” he added.
In Japan, Vice Finance Minister Masato Kanda said this week that authorities were keeping a close eye on movements in foreign exchange markets and were ready to step in with yen support 24 hours a day.
READ: Japanese yen touches 38-year low as global stocks finish mixed
Their determination was put to the test after the yen fell to 160.87 per dollar late Wednesday — its weakest since 1986 — as US Treasury yields spiked.
Analysts say it is possible traders will keep pushing the envelope to see at what point the government will act, with some saying the currency could hit 170.
In Europe, France’s political future was up in the air with the far right surging in polls as President Emmanuel Macron’s centrist alliance battles to make up ground. Paris stocks ended the day down 1.0 percent.
The French election comes ahead of a UK national vote on July 4, with the right-wing Conservatives led by Prime Minister Rishi Sunak expected to lose power to the center-left Labour Party. London’s blue-chip FTSE 100 index shed 0.6 percent.