Global stocks rise before Fed meet
France's CAC 40 gained 0.3, Germany's DAX edged up 0.2%. Britain's FTSE 100 rose 0.2% to 6,961.41
image for illustrative purpose
Tokyo Global shares were moderately higher in listless trading Wednesday, as investors watched for news out of a Federal Reserve meeting. France's CAC 40 gained 0.3 per cent in early trading to 6,291.87, while Germany's DAX edged up 0.2 per cent to 15,279.81. Britain's FTSE 100 rose 0.2 per cent to 6,961.41.
The future for the Dow industrials slipped 0.1 per cent to 33,834, and S&P 500 futures rose 0.1 per cent to 4,182.12. Japan's Nikkei 225 added 0.2 per cent to finish at 29,053.97, while South Korea's Kospi slipped 1.1 per cent to 3,181.47. Australia's S&P/ASX 200 added 0.4 per cent to 7,064.70. Hong Kong's Hang Seng climbed 0.5 per cent to 29,071.34, while the Shanghai Composite rose 0.4 per cent to 3,457.07. Analysts said Asian investors have adopted a wait-and-see stance ahead of the Fed meeting.
"But the wider point and the bigger driver of markets, as equities shuffled nervously ahead of the FOMC meeting today, is arguably just how much restraint the Fed will exercise," said Venkateswaran Lavanya at Mizuho Bank. Also on tap is President Joe Biden's speech to a joint session of Congress, which is expected to lay out several parts of his agenda such as increased infrastructure spending, likely higher taxes on the wealthy and higher funding for government programs.
The slow pace of coronavirus vaccinations in some parts of Asia, including Japan, and a surge of cases in India are adding to continued worries about the pandemic, in contrast with vaccination progress in the US and parts of Europe. Japan has declared a state of emergency in some urban areas, trying to curb travel, crowds and the spread of infections, as the country heads to a series of national holidays called Golden Week.
Investors expect US corporate results due out this week to show stronger profits as more people are vaccinated and increase their spending. Global investors are gauging how companies fared during the first quarter and any other information that can help paint a clearer picture of where the economy is headed. The Federal Reserve started a two-day policy meeting Tuesday.
Investors expect the US central bank to keep its key lending rate close to zero and inject more money into the financial system through bond purchases. In energy trading, benchmark US crude fell 9 cents to $62.85 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard, lost 13 cents to $66.29 a barrel. In currencies, the US dollar fell to 108.85 Japanese yen from 108.92 yen. The euro cost $1.2075, down from $1.2091. (AP)
