Asian stocks in red ahead of Fed meet on rates

Global shares were mixed on Wednesday as markets awaited a decision on interest rates by the Federal Reserve. France’s CAC 40 inched down less than 0.1 per cent to 7,281.23 and Germany’s DAX added 0.3 per cent to 15,715.93. Britain’s FTSE 100 gained 0.6 per cent to 7,704.97 after the government reported inflation fell unexpectedly in August to its lowest level since the start of Russia’s invasion of Ukraine, which has led to sharp rises in energy and food costs. The Office for National Statistics said the consumer prices index was up 6.7 per cent in August from the year before, down from 6.8 per cent in July. US futures were little changed, with contracts for both the S&P-500 and the Dow industrials up less than 0.1 per cent. The Fed began a meeting on interest rates Tuesday, with an announcement scheduled for later Wednesday.

Traders are split on whether the Fed may raise rates again this year, but they’re largely expecting the Fed to begin cutting rates next year. Such cuts can act like steroids for financial markets, giving a lift to all kinds of investments. Japan’s central bank is due to wrap up a two-day policy setting meeting on Friday. In Asian trading, Japan’s Nikkei 225 fell 0.7 per cent to finish at 33,023.78. Australia’s S&P/ASX 200 slipped 0.5 per cent to 7,163.30. South Korea’s Kospi was little changed, inching up less than 0.1 per cent to 2,559.74. Hong Kong’s Hang Seng dipped 0.6 per cent to 17,885.60, while the Shanghai Composite shed 0.5 per cent to 3,108.57.