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Tag: monetary policy

Asian Shares Mixed on US Rally, China Economic Growth Woes
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Asian Shares Mixed on US Rally, China Economic Growth Woes

By YURI KAGEYAMA, AP Business WriterTOKYO (AP) — Asian shares were mixed Friday, as Chinese shares sank after leaders acknowledged the official 5.5% growth target for this year won't be met.Investors appear to have grown more convinced that the Federal Reserve may temper its aggressive interest rate hikes aimed at taming inflation after the Commerce Department reported the U.S. economy contracted at a 0.9% annual pace in the last quarter. That followed a 1.6% year-on-year drop in the first quarter.Investors were also cautiously eyeing regional tensions over China’s stance on Taiwan after President Joe Biden and China’s Xi Jinping spoke for more than two hours on Thursday. China left no doubt it blames the U.S. for a deteriorating relationship, but the White House said call's aim was to ...
US Economy Likely Grew Modestly, if at All, Last Quarter
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US Economy Likely Grew Modestly, if at All, Last Quarter

By PAUL WISEMAN, AP Economics WriterWASHINGTON (AP) — After going backward from January through March, the U.S. economy probably didn't do much better in the spring.On Thursday morning, the government will reveal just how weak economic growth was in the April-June quarter — and perhaps offer clues about whether the United States may be approaching a recession.The report comes at a critical time: On Wednesday, the Federal Reserve raised its benchmark interest rate by a sizable three-quarters of a point for a second straight time in its push to conquer the worst inflation outbreak in four decades. The Fed is aiming for a notoriously difficult “soft landing”: An economic slowdown that manages to rein in rocketing prices without triggering a recession.Forecasters surveyed by the data firm F...
Alphabet, Microsoft Boost US Stocks as Market Waits on Fed
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Alphabet, Microsoft Boost US Stocks as Market Waits on Fed

NEW YORK (AP) — Stocks are opening higher Wednesday, with a raft of corporate earnings reports sparking a sharp rebound from losses a day earlier. The S&P 500 is up about a percent at the opening bell and the technology-heavy Nasdaq Composite is posting even stronger gains. Alphabet shares are gaining after Google's parent company reported second-quarter numbers overnight that investors seem to like, and Boeing and Microsoft are also rising on their second-quarter report. Investors will turn their focus later today to an expected decision on interest rates from the Federal Reserve.(asterisk)(asterisk)(asterisk) THIS IS A BREAKING NEWS UPDATE. AP's earlier story appears below. (asterisk)(asterisk)(asterisk)Wall Street futures advanced Wednesday as traders prepared for what most expec...
Asian Stocks Follow Wall St Lower Before Likely US Rate Hike
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Asian Stocks Follow Wall St Lower Before Likely US Rate Hike

By JOE McDONALD, AP Business WriterBEIJING (AP) — Asian stock markets followed Wall Street lower Wednesday as traders prepared for a possible sharp interest rate hike by the Federal Reserve to cool inflation.Shanghai, Hong Kong and South Korea declined. Tokyo and Sydney advanced. Oil prices were little changed, staying below $100 per barrel.Wall Street tumbled Tuesday after Walmart warned that inflation that has spiked to a four-decade high of 9.1% is hurting American consumer spending.Investors worry aggressive action against inflation by the Fed and central banks in Europe and Asia might derail global economic growth.Political CartoonsThe Fed is expected to announce a rate hike Wednesday of up to three-quarters of a percentage point, triple its usual margin. That would match a similar...