TOKYO (AP) — In Tokyo, Japan, global shares saw a downward trend on Friday following a retreat on Wall Street, with a drop in Nvidia stock leading the decline. This resulted in various stock indices across Europe and the United States experiencing losses, indicating a cautious sentiment among investors.
France’s CAC 40 and Germany’s DAX both saw minor decreases, while Britain’s FTSE 100 also declined. In the United States, the futures for the Dow Jones Industrial Average and S&P 500 showed slight decreases. In Japan, the Nikkei 225 index closed almost unchanged after a government report showed a slight increase in the inflation rate for May.
Experts are closely watching the market as they anticipate the next meeting of the Bank of Japan, looking for signs of a potential rate hike in September. The Japanese yen has weakened significantly against the U.S. dollar, prompting concerns about exchange rate volatility. Additionally, the U.S. Treasury has put Japan on a watchlist for currency manipulation.
In China, the central bank has taken measures to stabilize the yuan by setting its value higher than expected. This move came after technology-related shares in the country declined following Nvidia’s performance in the market. Across Asia, stock markets in Hong Kong and Shanghai saw losses, while Australia’s S&P/ASX 200 index rose slightly.
On Wall Street, the S&P 500 and Nasdaq composite both retreated from their record highs, with the former slipping 0.3% and the latter falling 0.8%. The Dow Jones Industrial Average, however, managed to gain 0.8%. Nvidia, a key player in the AI sector, faced a setback in its stock performance after an initial gain, potentially risking its winning streak.
Early trading also saw fluctuations in oil prices, with benchmark U.S. crude and Brent crude experiencing minor declines. The euro also saw a decrease against the U.S. dollar in early morning trading. The global market remains attentive to various economic indicators and geopolitical events that could influence investor sentiment and market dynamics moving forward.