European, Asian markets face mixed results on Tuesday’s open

(MENAFN) Global stock markets exhibited mixed results on Tuesday, with Japan's Nikkei 225 index recovering some significant losses from the previous day. In early European trading, France’s CAC 40 dropped 0.3 percent to 7,614.13, while Germany’s DAX increased by 0.4 percent to 19,395.93. The FTSE 100 in London gained 0.3 percent, reaching 8,261.83. Investors were keenly awaiting key inflation data for Europe, scheduled to be released later in the day, which added a layer of anticipation to market movements.

Futures contracts for the S&P 500 remained relatively stable, while the Dow Jones Industrial Average futures edged down by 0.1 percent. A quarterly "tankan" survey conducted by the Bank of Japan revealed that business confidence among large manufacturers held steady at 13, indicating an improved outlook for business conditions. This positive score suggests that more companies are optimistic about their prospects than those who are pessimistic. The survey is closely monitored for insights into the Bank of Japan’s interest rate decisions, especially after the central bank ended negative rates in March and raised the short-term rate to 0.25 percent in July.

Japan also reported that its unemployment rate for August fell to 2.5 percent from 2.7 percent in July, aligning with market expectations. The Nikkei 225 index surged by 1.9 percent, closing at 38,651.97, as the yen weakened. The dollar was trading at 143.80 yen, up from 143.62 yen. The previous day, the Nikkei had plummeted nearly 5 percent following the announcement of Shigeru Ishiba as Japan's next prime minister. Investors viewed Ishiba, known for his expertise in defense and domestic economic issues, as a less favorable choice compared to some of his rivals in the ruling Liberal Democratic Party due to his support for raising interest rates.

In Australia, the S&P/ASX 200 dipped 0.7 percent to 8,208.90 after data indicated that retail sales in August rose by 3.1 percent year-on-year, surpassing expectations. Meanwhile, markets in China and South Korea were closed for holidays. Chinese markets, which experienced their best day since 2008 on Monday, will remain closed until October 7 for the National Day break.

On Monday, the S&P 500 climbed 0.4 percent, reaching a record high of 5,762.48, marking its fifth consecutive winning month and fourth straight winning quarter. The Dow Jones Industrial Average added less than 0.1 percent, closing at 42,330.15, while the Nasdaq composite rose by 0.4 percent to 18,189.17. Overall, the mixed market performance reflects varying investor sentiments amid significant economic indicators and geopolitical developments.

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