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London - World markets were mixed on Friday as investors were tempted to buy back into stocks after a week of steady losses, but remained worried by downbeat economic indicators from the US.
European indexes edged higher, though Asia mostly closed lower after a dour session on Wall Street. The muted forecasts from retailers including Nike and Bed Bath & Beyond raised concerns that high unemployment and weak consumer spending would stall an economic rebound.
Economic figures, including unemployment benefit claims and home sales, have this week also pointed to a stuttering recovery in the world's largest economy.
Britain's FTSE 100 stock index was up 0.1% at 5 104.35 while Germany's DAX was 0.2% higher at 6 128.47. France's CAC-40 was flat at 3 555.14.
Asian stocks fell, with Japan's Nikkei 225 down 1.9%, and Wall Street was expected to show little drive on the open. Dow futures were 0.3% higher at 10 129 while Standard & Poor's 500 futures were flat at 1 070.70.
Besides the weak US economic indicators, which suggest the global recovery may not be as robust as hoped, investors are also worrying that world leaders, who meet in Canada this weekend, disagree over how to guide the world economy back to strength.
"The cohesion generally evident among policymakers in dealing with the global crisis is in danger of giving way to a more divisive debate about how to manage the recovery," said Daragh Maher, currency analyst at Credit Agricole.
Investors cautious
Whereas Europe is firmly focused on tackling deficits with spending cuts, the US has warned that tough austerity could prematurely derail the global recovery.
Other ideas also divide world leaders, such as the notion of a bank levy, which several countries - notably those whose banks have not been devastated by the 2008 banking crisis, such as Australia and China - are reluctant to embrace
"Any hopes for a grand vision of how to protect the global recovery are unlikely to emerge," said Maher.
In Asia, Japan's benchmark Nikkei 225 stock index fell 190.86 points, to 9 737.48. Hong Kong's Hang Seng index slipped 0.2% to 20 690.79 and South Korea's Kospi shed 0.6% to 1 729.84.
Benchmarks in Australia, Malaysia, Taiwan, mainland China and India were also in the red.
Japanese exporters retreated amid concerns about the yen's ongoing strength against the dollar while in Australia, commodity and financial names were among the day's big losers as investors took a cautious stance amid uncertainty about what policies new Prime Minister Julia Gillard could implement.
"I think in general stocks will trade sideways until we get a bit more clarity with company earnings in a couple weeks," said Tey Tze Ming, a trader with Saxo Capital Markets in Singapore. "I think the global economic recovery is still intact so I'm pretty optimistic on stocks."
The Dow Jones industrial average on Thursday fell 1.4% to 10 152.80, while the broader Standard & Poor's 500 index fell to 1 073.69, completing its first four-day drop since early May.
In currencies, the dollar rose to ¥89.70 from ¥89.54 in New York late on Thursday. The euro fell to $1.2313 from $1.2326.
Benchmark crude for August delivery was down 30c at $76.21 a barrel in electronic trading on the New York Mercantile Exchange. The contract added 16 cents to settle at $76.51 a barrel on Thursday.
- AP
European indexes edged higher, though Asia mostly closed lower after a dour session on Wall Street. The muted forecasts from retailers including Nike and Bed Bath & Beyond raised concerns that high unemployment and weak consumer spending would stall an economic rebound.
Economic figures, including unemployment benefit claims and home sales, have this week also pointed to a stuttering recovery in the world's largest economy.
Britain's FTSE 100 stock index was up 0.1% at 5 104.35 while Germany's DAX was 0.2% higher at 6 128.47. France's CAC-40 was flat at 3 555.14.
Asian stocks fell, with Japan's Nikkei 225 down 1.9%, and Wall Street was expected to show little drive on the open. Dow futures were 0.3% higher at 10 129 while Standard & Poor's 500 futures were flat at 1 070.70.
Besides the weak US economic indicators, which suggest the global recovery may not be as robust as hoped, investors are also worrying that world leaders, who meet in Canada this weekend, disagree over how to guide the world economy back to strength.
"The cohesion generally evident among policymakers in dealing with the global crisis is in danger of giving way to a more divisive debate about how to manage the recovery," said Daragh Maher, currency analyst at Credit Agricole.
Investors cautious
Whereas Europe is firmly focused on tackling deficits with spending cuts, the US has warned that tough austerity could prematurely derail the global recovery.
Other ideas also divide world leaders, such as the notion of a bank levy, which several countries - notably those whose banks have not been devastated by the 2008 banking crisis, such as Australia and China - are reluctant to embrace
"Any hopes for a grand vision of how to protect the global recovery are unlikely to emerge," said Maher.
In Asia, Japan's benchmark Nikkei 225 stock index fell 190.86 points, to 9 737.48. Hong Kong's Hang Seng index slipped 0.2% to 20 690.79 and South Korea's Kospi shed 0.6% to 1 729.84.
Benchmarks in Australia, Malaysia, Taiwan, mainland China and India were also in the red.
Japanese exporters retreated amid concerns about the yen's ongoing strength against the dollar while in Australia, commodity and financial names were among the day's big losers as investors took a cautious stance amid uncertainty about what policies new Prime Minister Julia Gillard could implement.
"I think in general stocks will trade sideways until we get a bit more clarity with company earnings in a couple weeks," said Tey Tze Ming, a trader with Saxo Capital Markets in Singapore. "I think the global economic recovery is still intact so I'm pretty optimistic on stocks."
The Dow Jones industrial average on Thursday fell 1.4% to 10 152.80, while the broader Standard & Poor's 500 index fell to 1 073.69, completing its first four-day drop since early May.
In currencies, the dollar rose to ¥89.70 from ¥89.54 in New York late on Thursday. The euro fell to $1.2313 from $1.2326.
Benchmark crude for August delivery was down 30c at $76.21 a barrel in electronic trading on the New York Mercantile Exchange. The contract added 16 cents to settle at $76.51 a barrel on Thursday.
- AP
