Global stocks mixed after Wall St sinks on rate fears

BEIJING (AP) — Global stock markets were mixed Tuesday as traders looked ahead to a speech by Federal Reserve Chair Jerome Powell for clues to interest rate plans after Japanese wages rose and Australia's central bank hiked its key rate again.

London and Shanghai gained. Frankfurt, Tokyo and Wall Street futures declined. Oil prices rose.

Last week's unexpectedly strong U.S. data on hiring and wages dampened hopes the Fed might decide it has succeeded in cooling inflation that is at multi-decade highs and can wind down plans for more rate hikes.

During his appearance in Washington, Powell is “likely to repeat that inflation is still too high” and the “policy rate will have to rise,” said Rubeela Farooqi and John Silvia of High-Frequency Economics in a report.

Traders worry the Fed and other central banks might tip the global economy into recession to extinguish inflation. Some are counting on a U.S. rate cut as early as late 2023 despite comments by Fed officials that borrowing costs will have to stay elevated for an extended period.

In early trading, the FTSE 100 in London gained 0.3% to 7,863.65. Frankfurt's DAX fell 0.4% to 15,291.90 and the CAC 40 in Paris lost 0.3% to 7,115.76.

On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones Industrial Average were off 0.1%.

On Tuesday, the S&P 500 fell 0.6% and the Dow lost 0.1%. The Nasdaq composite tumbled 1%.

In Asia, the Nikkei 225 in Tokyo lost less than 0.1% to 27,685.47 after the government reported wages rose 4.8% over a year earlier in December. That was close to a three-decade high as workers press for higher pay to keep pace with inflation.

The Shanghai Composite Index rose 0.3% to 3,248.09 and the Hang Seng in Hong Kong advanced 0.6% to 21,298.70. The Kospi in Seoul added 0.6% to...