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Global Shares Mostly Higher Tuesday    08/16 05:57

   Global shares mostly rose Tuesday, despite investor risk reflected in 
negative economic data out of China, and analysts warned that volatility may 
lie ahead.

   TOKYO (AP) -- Global shares mostly rose Tuesday, despite investor risk 
reflected in negative economic data out of China, and analysts warned that 
volatility may lie ahead.

   European shares gained in early trading. The benchmark in Tokyo finished 
little changed, while indexes in South Korea and Australia gained. Hong Kong's 
benchmark slipped, while Shanghai shares rose.

   France's CAC 40 added 0.4% in early trading to 6,598.28. Germany's DAX rose 
0.6% to 13,904.68. Britain's FTSE 100 added 0.4% to 7,539.93. U.S. shares were 
set to drift moderately lower with Dow futures inching down to 33,869.00. S&P 
500 futures fell nearly 0.1% to 4,295.00.

   Falling oil prices are one positive factor for the region. In Japan, recent 
economic data have shown a recovery, but high rates of COVID-19 are fueling 
fears people will hold back on travel and other economic activity.

   Some analysts say stock prices haven't properly reflected real risks.

   "It doesn't seem to matter what the news is, there is just a huge appetite 
to buy stocks. And to keep buying," said Clifford Bennett, chief economist at 
ACY Securities. "Talk of the bottom having already been priced in seems 
somewhat premature. Should the market turn down again after all this long 
positioning, it will fall with a thunderous impact. Buyers beware."

   Japan's benchmark Nikkei 225 was little changed and finished at 28,868.91. 
South Korea's Kospi rose 0.2% to 2,533.52. Australia's S&P/ASX 200 added 0.6% 
to 7,105.40. Hong Kong's Hang Seng reversed course and was down 1.1% at 
19,830.52, while the Shanghai Composite gained nearly 0.1% to 3,277.88.

   Markets reacted to news overnight that China's central bank cut a key 
interest rate, acknowledging more needed to be done to shore up its economy. 
The move is the latest warning for markets already on edge over record-high 
inflation and fears about recessions in the U.S. and elsewhere.

   China is the world's second-largest consumer of crude oil, so the news 
weighed on energy prices. U.S. crude oil prices slumped 2.9% on worries about 
the global economy and weighed heavily on energy stocks.

   In Tuesday trading, benchmark U.S. crude fell $1.46 to $87.95 a barrel. 
Brent crude, the international standard, lost $1.73 to $93.37.

   Global investors are worried that the U.S. Federal Reserve could hit the 
brakes too hard and send the economy into a recession. Any signal that 
inflation could be peaking or retreating has helped ease some of those worries.

   "Lack of direction is what investors will be suffering until we see clearer 
signs of inflation abating. And that will take time, as we must see a couple of 
encouraging data points to call the central banks' inflation fight successful. 
The lack of clear direction is driving the markets up and down," said Ipek 
Ozkardeskaya, senior analyst at Swissquote Bank.

   Investors are also keeping a close watch on how inflation is affecting 
businesses and consumers. Spending has slowed and the broader economy has 
already contracted for two straight quarters. Several big retailers will give 
investors more detail on how their businesses are holding up when they report 
earnings this week.

   Home Depot and Walmart report their results on Tuesday, and Target's results 
are due on Wednesday. The U.S. Commerce Department also releases its July 
retail sales report on Wednesday. Economists surveyed by FactSet expect modest 
0.2% growth from June, when sales rose 1%.

   In currency trading, the U.S. dollar edged up to 133.85 Japanese yen from 
133.27 yen. The euro cost $1.0145, down from $1.0165.

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