Tokyo, Sep 15 (AP) Global shares were trading mixed on Monday, as markets looked ahead to a possible move by the US Federal Reserve later this week to cut interest rates.

France's CAC 40 jumped 1.2 per cent in early trading to 7,915.30, while the German DAX gained 0.6 per cent to 23,838.03. Britain's FTSE 100 was little changed, inching down less than 0.1 per cent to 9,282.51. US US shares were set to drift higher with Dow futures gaining 0.2 per cent to 46,287.00. S&P 500 futures rose nearly 0.1 per cent to 6,650.50.

In Asia, Hong Kong's Hang Seng added 0.2 per cent to 26,446.56. The Shanghai Composite edged down 0.3 per cent to 3,860.50.

Worries are simmering about China's economy, as analysts say the data for August aren't strong enough to reflect ongoing dynamic growth, especially given the damage from US President Donald Trump's tariff policies.

“China's economy continued to slide in August, with all key activity readings falling short of market forecasts once more,” Lynn Song of ING Economics said in a report.

“Given the slowdown of the past few months, we expect that there's a strong case for additional short-term stimulus efforts,” China's retail sales rose 3.4 per cent, a 12-month low that was down from 5.7 per cent in July and 6.8 per cent in June. Retail sales rose 3.4 per cent, the slowest pace since last November.

“The underlying flow is shifting. For years, Beijing leaned on exports as the carry trade that kept growth rolling even as property cracked. But with Trump's tariffs slicing through supply chains, that leg of the trade is gone,” said Stephen Innes, managing partner at SPI Asset Management.

Australia's S&P/ASX 200 lost 0.1 per cent to 8,853.00, while South Korea's Kospi gained 0.4 per cent to 3,407.31. Stock trading was closed on Monday for a national holiday in Japan.

Expectations are growing that the US Federal Reserve will cut its main interest rate for the first time this year at its meeting this week. That means that, if the interest rate cut doesn't happen, the market could drop in disappointment.

In energy trading, benchmark US crude rose 31 cents to USD 63.00 a barrel. Brent crude, the international standard, added 27 cents to USD 67.26 a barrel.

In currency trading, the US dollar inched up to 147.67 Japanese yen from 147.65 yen. The euro cost USD 1.1734, little changed from USD 1.1732. (AP) SKS SKS

Monetary policy uncertainty: markets trade mixed ahead of a possible interest-rate cut, pressured by weak Chinese data. Global equity markets traded mixed as investors awaited a potential US interest-rate cut, with modest gains in Europe and Nasdaq futures slightly higher while Asia showed divergent performance. Weak Chinese activity, including softer retail sales, heightened calls for short-term stimulus and weighed on sentiment. Expectations of a Fed rate reduction underpin current market support, and commodity and currency markets moved modestly in response.