World stock markets showed mixed performance on Wednesday as investors remained cautious despite recent gains, with the Australian dollar declining following weak economic data.
The MSCI global equity index remained stable after reaching a 4.5-month peak on October 10, 2018, while European stocks dipped 0.2%. Chinese stocks rose over 1.5% as authorities announced tax cuts and infrastructure investments to stimulate domestic consumption. The Shanghai Composite Index approached a nine-month high, though institutional investor participation remained limited.
Shaniel Ramjee, a multi-asset manager at Pictet Asset Management in London, noted that institutional investor involvement has been minimal during the market rally, while broader economic trends show slowing momentum.
Australian economic growth slowed to 0.2% in the fourth quarter, below forecasts, causing the Aussie dollar to drop 0.8% to $0.7028—the lowest level since January 4. Analysts suggested central bank rate cuts may be necessary.
European Central Bank policymakers prepared to discuss potential stimulus measures, while U.S. crude oil futures fell 1% to $56.01 per barrel amid rising stockpiles. Brent crude eased 0.9% to $65.27 per barrel.
Reporting by Saikat Chatterjee; Additional reporting by Shinichi Saoshiro in TOKYO, Tommy Wilkes, Dhara Ranasinghe and Helen Reid in LONDON; Editing by Andrew Heavens
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