HONG KONG — Global stock markets generally experienced declines on Friday as investors prepared for the release of the U.S. personal spending figures for November, anticipated later that day.

In the UK, the FTSE 100 saw a 0.3% decrease, settling at 8,078.21, while Paris’s CAC 40 fell by 0.9% to reach 7,226.70. Germany’s DAX index also dropped, declining 0.9% to 19,780.63.

Futures for the S&P 500 decreased by 0.4%, and the Dow Jones Industrial Average futures were down by 0.2%. In Tokyo, the Nikkei 225 index fell 0.3% to 38,701.90, following the release of November’s inflation data, which indicated a core inflation rate of 2.7% year-on-year, surpassing forecasts.

This inflation data came after the Bank of Japan opted to maintain a benchmark interest rate of 0.25% on Thursday, which strengthened the dollar against the yen. The dollar traded at 156.86 yen on Friday, a decrease from 157.43 yen but above the average of 150 yen recorded earlier in the month.

In the Hong Kong market, the Hang Seng index added 0.2%, reaching 19,720.70, while the Shanghai Composite index saw a slight dip of 0.1% to 3,368.07 following China’s central bank’s decision to keep its loan prime rates steady. The one-year lending rate, relevant to corporate and household loans, was maintained at 3.1%, the five-year rate remained static at 3.6%, which is critical for mortgage rates.

In Australia, the S&P/ASX 200 index dropped 1.2% to 8,067.00, and South Korea’s Kospi lowered by 1.3% to finish at 2,404.15. On the previous day, the S&P 500 had dipped 0.1%. The Dow Jones Industrial Average remained almost unchanged, gaining less than 0.1%, while the Nasdaq composite experienced a similar decrease.

Recent market challenges have dampened some enthusiasm among investors, with critics highlighting that optimistic market sentiments needed to be justified with strong fundamentals. Despite this week’s lows, major indices remain near all-time highs, and the S&P 500 is still pacing toward an impressive annual gain of 23%, marking one of its best performances this millennium.

Market expectations suggest that the Federal Reserve might implement only one or two interest rate cuts over the next year, as per data from CME Group. Some traders are even speculating that there may be no cuts at all. A month prior, many market participants believed that two reductions in 2025 were highly likely.

Lower interest rates are typically favored by Wall Street since they foster economic growth and bolster investment prices, but they can also exacerbate inflationary pressures. Treasury yields reflected mixed movements a day following a rise prompted by expectations of fewer rate cuts by the Fed.

Recent reports regarding the U.S. economy provided a mixed view. One report indicated a stronger-than-expected growth rate of 3.1% in the overall economy for the summer, demonstrating resilience even as the Fed maintained its interest rates at a two-decade high prior to initiating cuts in September. Conversely, another report indicated a decrease in initial jobless claims, suggesting stability within the job market, though a separate report indicated that manufacturing activities in the mid-Atlantic region were unexpectedly contracting contrary to economists’ growth predictions.

The yield on the 10-year Treasury rose to 4.57%, up from 4.52% on Wednesday and also above 4.20% from earlier this month. However, the yield on the two-year Treasury, which closely aligns with anticipated Fed actions in the short term, ticked down to 4.31% from 4.35%.

In the commodities market, U.S. benchmark crude oil prices fell by 57 cents to settle at $68.81 per barrel on the New York Mercantile Exchange, while Brent crude, the global benchmark, dropped by 60 cents to $72.28 per barrel.

Additionally, the euro strengthened slightly against the dollar, rising to $1.0380 from $1.0367.