European and Asian stock markets mostly retreated Friday as US and China policy updates cause concern about growth outlooks in the world’s two biggest economies.There is unease that US president-elect Donald Trump’s planned tax cuts and import tariffs will rekindle inflation in the United States and beyond, which could in turn see the Federal Reserve scale back on interest-rate cuts.Europe’s main stock markets lost almost one percent around midday, despite Wall Street striking fresh record highs Thursday after the Fed trimmed US borrowing costs by 25 basis points.The dollar traded mixed against main rivals Friday.”(Fed) news which ordinarily would have drawn a lot of the market’s focus has been pushed down the agenda as attention is turned to the implications of Donald Trump’s return to the White House,” noted Russ Mould, investment director at AJ Bell trading group.Chinese stocks ended lower Friday ahead of fresh announcements aimed at stimulating China’s struggling economy.China unveiled some of its most ambitious plans in years to lift local government debt following a meeting of lawmakers eyeing the possibility of intensified trade tensions with Trump.Chinese media said officials in Beijing would raise the debt ceiling for local governments by $840 billion.”The market reaction shows that traders do not see these measures as boosting consumption, and instead they are designed to stop a financial crisis domestically in China,” concluded Kathleen Brooks, research director at traders XTB. China broadcaster CCTV described the move as the country’s “most powerful debt reduction measure in recent years”, adding it would free “up space for local governments to better develop the economy and protect people’s livelihood”.It came amid uncertainty about the outlook for China after the election of Trump, who warned during his campaign that he would hit imports from the country with huge tariffs of up to 60 percent.”On balance, it is likely that Trump’s electoral victory presents additional downward pressure to China’s growth in the next few years (depending on various policy responses in both the US and China),” said National Australia Bank’s Gerard Burg.- Key figures around 1130 GMT -London – FTSE 100: DOWN 0.9 percent at 8,064.58 pointsParis – CAC 40: DOWN 0.9 percent at 7,356.75Frankfurt – DAX: DOWN 0.9 percent at 19,193.31Tokyo – Nikkei 225: UP 0.3 percent at 39,500.37 (close)Hong Kong – Hang Seng Index: DOWN 1.1 percent at 20,728.19 (close)Shanghai – Composite: DOWN 0.5 percent at 3,452.30 (close)New York – Dow: FLAT at 43,729.34 (close)Euro/dollar: DOWN at $1.0795 from $1.0801 on ThursdayPound/dollar: DOWN at $1.2973 from $1.2985Dollar/yen: DOWN at 152.31 yen from 152.92 yenEuro/pound: UP at 83.20 pence from 83.18 penceWest Texas Intermediate: DOWN 1.1 percent at $71.56 per barrelBrent North Sea Crude: DOWN 0.9 percent at $74.95 per barrel

Sony’s net profit jumped in the second quarter thanks to stronger sales in gaming, music and imaging sensors, the PlayStation maker said Friday as it left its annual profit forecasts unchanged.The yen’s weakness against the dollar and euro had a positive impact on takings in those key sectors, the Japanese conglomerate said.However, Sony Pictures suffered from “lower series deliveries” for television, “in part due to production delays related to the strikes in Hollywood”.Sony’s earnings release comes a day after its PlayStation 5 Pro console hit shelves, with a price tag that has raised eyebrows among gamers.In Europe the device costs an eye-watering 799.99 euros ($860) — 250 euros higher than the older version — and almost 120,000 yen ($780) in Sony’s home market of Japan.Sony president Hiroki Totoki told reporters that while “various people have made various comments” about the price, it has not had a negative impact on sales.For July-September, Sony logged net profit of 338.5 billion yen ($2.2 billion), up 69 percent from 200.1 billion yen in the same period a year ago.It still forecasts a full-year net profit of 980 billion yen.The company also maintained its operating profit outlook, but revised its sales forecast upwards slightly.The company said Friday that an increase in sales for imaging sensors — used in phone cameras — as well as the “positive impact of foreign exchange rates” contributed to growth in the operating profit for that segment.The yen hit a four-decade low against the dollar in July, having plunged in value since early 2022.Reforms to Sony’s gaming business, including in cost reduction and sales marketing, “brought a relatively good result for this period”, Totoki said on Friday.Music streaming is also a money-spinner for Sony, which has an impressive back catalogue and whose current roster includes top artists such as Beyonce and Lil Nas X.According to recent reports in Variety and the Financial Times, citing sources, British rockers Pink Floyd have agreed to sell their recorded music and name-and-likeness rights to Sony Music for around $400 million.Acquiring back catalogues “shows our commitment to artists” and “is expected to have a positive impact on our music business”, Totoki said without giving details.When asked about Donald Trump’s victory in this week’s US presidential election, Totoki said Sony was considering, in a broad sense, how best to deal with any new tariffs that could be imposed.”Our position is that we respect the US citizens’ choice, and as I’m not a geopolitics specialist, I’ll let those specialists give their analysis,” he said.But “the impact the US economy has on the global economy and on geopolitics is extremely big, and that in turn would have impact on our business”.”So we’ll squarely observe the facts, make forecasts, and do whatever we can.”

Asia’s markets rally stuttered Friday after early gains as traders struggled to keep up with another Wall Street record following the Federal Reserve’s interest rate cut, while they were also weighing the outlook with another Trump administration.Traders were also awaiting the end of a week-long meeting of key Chinese officials who have been hammering out a major stimulus package for the world’s number two economy with an eye on the US election result.While there are concerns that another four years of Donald Trump could see a rise in tensions between Beijing and Washington, investors are optimistic that his plans to slash taxes and push through more deregulation will boost companies’ bottom lines.There are worries that the Republican’s policies could stoke inflation again, dealing a blow to the Fed’s long-running battle against prices.But central bank boss Jerome Powell added to the upbeat mood Thursday by insisting that the outcome of this week’s vote would have no impact on policymakers’ decision-making, adding that they would make their decisions based on data.After the policy board cut rates 25 basis points to 4.50-4.75 percent, as expected following September’s 50-point reduction, Powell said: “We don’t guess, we don’t speculate, and we don’t assume.”The Fed’s post-meeting statement said that “labour market conditions have generally eased” since earlier in the year and noted progress in bringing inflation down to its two percent target. Traders are now trying to ascertain the outlook for another cut in December.”With Powell squarely focused on labour, the combination of an inflation rate now in the realm of the Fed’s target means it can easily justify further cuts,” said Robert Tipp and Tom Porcelli at PGIM Fixed Income.”Although uncertainty abounds, the Fed’s year-end 2025 forecast for a Fed funds rate of 3.5 percent is still a useful starting point for where this cycle is going.”On Wall Street, the S&P 500 and Nasdaq rallied again to hit fresh records, helped by strong performances by tech titans Apple, Google parent Alphabet and Facebook’s Meta.Asia took up the baton in early trade but some markets fell away in the afternoon.Tokyo, Sydney, Singapore, Wellington, Taipei and Jakarta rose.But Hong Kong and Shanghai turned negative along with Seoul, Manila, Mumbai and Bangkok.London edged up at the open while Paris and Frankfurt were flat.On currency markets, the dollar fell against the yen, extending Thursday’s losses in reaction to the Fed cut, while bitcoin hit another all-time peak of more than 76,956 on hopes of more support from a crypto-friendly Trump White House.After markets closed, Chinese media said officials in Beijing would raise the debt ceiling for local governments by $840 billion in a bid to boost the country’s faltering economy.Broadcaster CCTV described the move as China’s “most powerful debt reduction measure in recent years”, adding the move would free “up space for local governments to better develop the economy and protect people’s livelihood”.The meeting came amid uncertainty about the outlook for China after the election of Trump, who warned during his campaign that he would hit imports from the country with huge tariffs of up to 60 percent.”On balance, it is likely that Trump’s electoral victory presents additional downward pressure to China’s growth in the next few years (depending on various policy responses in both the US and China),” said National Australia Bank’s Gerard Burg.However, Michael Hewson at MCH Market Insights, added: “There is a sense of deja vu with respect to Donald Trump winning the US presidential election, both politically as well as from a market point of view.”On the one hand, we have some serious hand-wringing going on as some parts of the political spectrum go into a collective pearl-clutching meltdown at the prospect of four years of unfettered Trumpism.”As far as the markets are concerned the response has been more tempered to the one we observed eight years ago, when the volatility was much more pronounced.”- Key figures around 0710 GMT -Tokyo – Nikkei 225: UP 0.3 percent at 39,500.37 (close)Hong Kong – Hang Seng Index: DOWN 1.1 percent at 20,728.19 (close)Shanghai – Composite: DOWN 0.5 percent at 3,452.30 (close)London – FTSE 100: UP 0.2 percent at 8,155.56Euro/dollar: DOWN at $1.0779 from $1.0801 on ThursdayPound/dollar: DOWN at $1.2965 from $1.2985Dollar/yen: DOWN at 152.62 yen from 152.92 yenEuro/pound: DOWN at 83.15 pence from 83.18 penceWest Texas Intermediate: DOWN 0.9 percent at $71.74 per barrelBrent North Sea Crude: DOWN 0.7 percent at $75.09 per barrelNew York – Dow: FLAT at 43,729.34 (close)

China is expected to unveil a huge support package for the struggling economy Friday as officials wrap up a key meeting eyeing on the possibility of intensified trade tensions with US president-elect Donald Trump.Economists predict Beijing will approve hundreds of billions of dollars of help, with a focus on indebted local governments as well as cash for banks aimed at writing off non-performing loans.Policymakers were keeping tabs on the US vote as they gathered in the Chinese capital this week for a meeting of the country’s top lawmaking body.Trump promised during his campaign of punishing tariffs on Chinese goods that threaten further grief for the world’s second-largest economy, which is already grappling with a prolonged housing crisis and sluggish consumption.Observers say Beijing could seek to cushion that blow with a long-awaited “bazooka stimulus” for the economy — though caution details might still take time.The meeting, originally scheduled for late October, was likely pushed back to allow “policymakers a chance to address a possible Trump win”, Lynn Song, chief economist for Greater China at ING, said.”In our view, the odds for a larger policy support package will rise somewhat with a Trump victory,” he added.Trump’s victory is “not necessarily bad for China as this may ‘pressure’ Beijing for a bigger stimulus”, Qi Wang, CIO of UOB Kay Hian Wealth Management, said on X.State media this week reported that officials had reviewed a bill to raise local government debt ceilings.That move, touted last month, would allow authorities to borrow more to fund the acquisition of unused land for development — a move aimed at pulling the property market out of a prolonged slump.Beijing began to unveil a raft of measures in September aimed at boosting economic activity, including rate cuts and the easing of some home purchasing restrictions, but analysts have bemoaned the lack of detail so far.Trump’s re-election provides a need for greater urgency, experts say, though caution may still prevail as officials try to avoid piling on more government debt.”Any potential stimulus size may be bigger, but so is the pressure,” Gary Ng, senior economist at Natixis, said.”The market may still not get the economic boosters it wants,” he warned.- ‘Turning point’ -In Beijing on Friday, people acknowledged recent woes but expressed cautious optimism about the future of their country’s economy.Han Xi, a 32-year-old man from Shanxi province in northern China, began a new auditing job in Beijing this week after resigning from his previous company in April.”I have sent out resumes during this period, but you can see it takes more than half a year to get a new job,” Han told AFP, adding that “many companies are laying off employees right now”.”But from a macroeconomic perspective, I’m generally optimistic,” Han added.”Even though we’re still in a downturn cycle, I think we are close to the turning point, though we haven’t quite reached it yet.”Guo Hailong, a 35-year-old from the northern China’s Inner Mongolia region, told AFP on Friday that his Beijing noodle shop was receiving noticeably fewer customers.But he told AFP that he was confident in Chinese leaders’ ability to effectively steer the economy through its current headwinds.”We just do our business well, provide good service, produce good products and ensure quality,” Guo said.”We can’t do anything if customers don’t come to eat.”China’s Premier Li Qiang this week said he was “fully confident” that the country would hit its growth target of around five percent for 2024, even after figures showed the economy saw its slowest expansion in a year and a half during the third quarter.And in a rare bright spot, data Thursday showed the nation’s exports surged last month at their fastest pace in more than two years.But Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, warned “we cannot rely on exports to carry China’s economy”.