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World Shares Mixed on Thursday         09/19 05:13

   Shares opened higher in Europe on Thursday after a mixed session in Asia 
following the Federal Reserve's decision to cut its benchmark interest rate for 
a second time this year.

   BANGKOK (AP) -- Shares opened higher in Europe on Thursday after a mixed 
session in Asia following the Federal Reserve's decision to cut its benchmark 
interest rate for a second time this year.

   Germany's DAX edged 0.1% higher to 12,406.82 while the FTSE 100 in Britain 
advanced 0.2% to 7,331.84. In France, the CAC 40 gained 0.5% to 5,641.35. U.S. 
shares looked set for losses, with the Dow future contract down 0.3% and that 
for the S&P 500 also 0.3% lower.

   Banks led gains following the quarter-point cut in the Fed's short-term 
interest rates to a range of 1.75% to 2%. Deutsche Bank jumped nearly 2% while 
Royal Bank of Scotland Group advanced 2.4% and HSBC climbed 0.7%.

   "Everything feels a little flat in the markets after the Fed left investors 
deflated and frustrated, despite delivering the 25 basis point rate cut they 
demanded," Craig Erlam of Oanda said in a commentary.

   "While investors may be frustrated about this, it's probably not the worst 
approach as we don't know how long the trade war will last, how much worse it 
will get and what the full consequences will be. "

   Japan's central bank opted to keep its own monetary policy unchanged and its 
key interest rate at minus 0.1%, as expected.

   The decision came amid signs of weaker consumer demand and exports and 
dimming confidence in the business outlook.

   "The bank did highlight increasing downside risks from external demand and 
stated that it will pay closer attention to the possibility that momentum 
towards reaching its 2% inflation target will be lost," Marcel Thieliant of 
Capital Economics said in a commentary.

   In Asia, the Nikkei 225 index gained 0.4% to 22,044.45 while the Kospi in 
Seoul climbed 0.5% to 2,080.35. Australia's S&P ASX 200 added 0.5% to 6,717.50, 
while late gains pushed the Shanghai Composite index up 0.5%, to 2,999.28.

   Hong Kong's Hang Seng declined 1.0% to 26,480.74. Its monetary authority 
announced a quarter-percentage point rate cut on Thursday. The monetary 
authority routinely follows the Fed's lead to keep the Hong Kong dollar rate 
steady against the U.S. dollar.

   India's Sensex dropped 1.1% to 36,155.69. Shares also fell in Singapore, 
Taiwan, Thailand and Indonesia.

   Brazil's central bank cut its benchmark rate on Wednesday, by 0.5%, and more 
decisions were expected Thursday from Indonesia, the Bank of England and the 
central banks in Sweden and Norway.

   Overnight on Wall Street, stocks initially declined after the central bank 
announced the widely expected rate cut. Its policy statement failed to indicate 
whether more rate cuts were likely this year, though the central bank left the 
door open for additional rate cuts if the economy weakens.

   The Fed is trying to combat threats to the U.S. economy, including 
uncertainties caused by President Donald Trump's trade war with China, slower 
global growth and a slump in American manufacturing.

   The U.S. market is on track for a slight weekly loss after three consecutive 
weeks of gains driven by signs of an easing in tensions in the U.S.-China trade 
war.

   Fresh talks in the dispute over technology and other policies are due in 
October.

   Bond prices rose and the yield on the 10-year Treasury fell to 1.78% from 
1.81% late Wednesday. Investors typically shift money into bonds when they grow 
more concerned about the economy's health.

   ENERGY: Oil prices were steady as Saudi Arabia said it was restoring 
production at an oil facility attacked over the weekend. Benchmark U.S. crude 
gained 14 cents to $58.25 per barrel in electronic trading on the New York 
Mercantile Exchange. Overnight, it lost $1.23 to settle at $58.11 per barrel. 
Brent crude, the international standard, picked up 19 cents to $63.79.

   The dollar slipped to 108.04 Japanese yen from 108.42 yen on Wednesday. The 
euro rose to $1.1057 from $1.1029. 


(CZ)

 
 
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