Global Stocks Mixed After Fed Rate Cut

Hong Kong, Sep 23 (AP) Global stocks were mixed on Monday following a series of key interest rate decisions last week by the US Federal Reserve, Japan, China, and Britain.

The CAC 40 in Paris slipped 0.3% to 7,481.56 after the composite factory activity data for September fell below the 50 threshold that separates expansion from contraction, signalling the strong growth in the French economy seen in August has evaporated.

A similar update on Germany's manufacturing sector, showed the HCOB Manufacturing PMI, or purchasing managers index, in September falling to 40.3, below expectations. Germany's DAX added 0.4% to 18,796.33. In London, the FTSE 100 rose 0.4% to 8,258.47.

The futures for the S&P 500 and the Dow Jones Industrial Average were little changed.

Chinese stocks got a lift after the central bank lowered its 14-day reverse repurchase rate to 1.85% from 1.95% on Monday after opting to keep key lending rates unchanged last week. Markets had been anticipating a cut. Meanwhile, officials said People's Bank of China Governor Pan Gongsheng would hold a news briefing to address support for the economy.

The Hang Seng in Hong Kong slipped 0.2% to 18,226.58 while the Shanghai Composite index added 0.4% to 2,748.92.

Markets in Japan were closed on Monday for a public holiday.

Japan's monetary policy remained in the spotlight after the Bank of Japan announced on Friday that it would keep its benchmark rate unchanged at 0.25%.

That weakened the Japanese yen, which tumbled back from last week's peak of around 140 to the US dollar. The dollar was trading at 143.56 yen on Monday.

Elsewhere, Australia's S&P/ASX 200 lost 0.7% to 8,152.90. The Reserve Bank of Australia begins a two-day policy meeting on Monday.

South Korea's Kospi climbed 0.3% to close at 2,602.01.

On Friday, the S&P 500 slipped 0.2% from its record, closing at 5,702.55. The Nasdaq composite fell 0.4% 17,948.32. The Dow Jones Industrial Average, meanwhile, added 0.1% to close at another record high, at 42,063.36.

Last week the Fed cut its main interest rate for the first time in more than four years, with more likely to come, ending a long run where it kept that rate at a two-decade high in hopes of slowing the US economy enough to stamp out high inflation. Inflation has subsided from its peak two summers ago and Chair Jerome Powell said the Fed can focus more on keeping the job market solid and the economy out of a recession.

The Fed is still under pressure because hiring has begun to slow under the weight of higher interest rates. Some critics say the central bank waited too long to cut rates and may have damaged the economy.

Critics also say the US stock market may be running too hot on the belief the Federal Reserve will pull off what seemed nearly impossible earlier: getting inflation down to 2% without creating a recession.

Last week, also, the Bank of England kept its main interest rate on hold at 5% in the wake of the Fed's move.

This week will bring preliminary reports on US business activity, the final revision for how quickly the economy grew during the spring and an update on spending by US consumers.

In other dealings early Monday, US benchmark crude oil lost 12 cents to $70.88 per barrel. Brent crude, the international standard, gave up 8 cents to $74.41 per barrel.

The euro fell to $1.1096 from $1.1162.