Global shares rise as U.S. futures gain amid subdued holiday trading

The U.S. has been hit with the threat of a worst-case scenario called “stagflation,” one where the economy stagnates yet inflation remains high.

Global shares rose Thursday in limited trading, with many markets closed for May Day, or international Labour Day holidays.

Britain’s FTSE 100 inched up less than 0.1 per cent in early trading to 8,496.53. The future for the S&P 500 jumped 1.5 per cent, while that for the Dow Jones Industrial Average gained 0.7 per cent.

Tokyo’s benchmark Nikkei 225 rose 1.1 per cent to finish at 36,452.30. As expected, the Bank of Japan decided to keep its benchmark interest rate unchanged as worries mount over the impact of Trump’s policies. The central bank also cut its economic growth forecast for the fiscal year ending March 2026 by more than half, to 0.5 per cent from 1.1 per cent three months ago.

“Considering the significant downgrading of growth and inflation forecasts in its Quarterly Outlook Report, the central bank will likely take a long pause to assess the impact of high global trade policy uncertainty on growth and inflation,” Shigeto Nagai of Oxford Economics said in a report.

The U.S. dollar rose to 144.19 Japanese yen from 143.06 yen. The euro cost $1.1329, inching down from $1.1331.

Australia’s S&P/ASX 200 edged up 0.2 per cent to 8,145.60.

Uncertainty about what President Donald Trump’s trade war will do to the U.S. economy remains a key focus for investors.

On Wednesday, the S&P 500 rose 0.2 per cent while the Dow gained 0.4 per cent. The Nasdaq composite index edged 0.1 per cent lower.