Global markets mixed ahead of Fed rate decision

Global stock markets were mixed Monday ahead of what is expected to be a decision this week by the Federal Reserve to raise interest rates again amid investors’ hopes that the US central bank will scale back plans for more hikes.

Germany’s DAX gained 0.2 percent to 13,269.55 and the UK’s FTSE 100 remained flat at 7,049.25.

In Paris, the CAC 40 lost 0.2 percent to 6,262.91. Futures for the S and P 500 were down 0.6 percent, while that for the Dow Industrials was down 0.5 percent.

Wall Street ended higher last week after Apple and other major companies reported strong gains and a closely watched inflation measure accelerated in September.

The Fed is widely expected to announce another rate hike of 0.75 percentage point, three times its usual margin, at this week’s meeting.

Investors are looking for signs that officials are satisfied that past hikes imposed to cool inflation, which has been high for nearly four decades, are working and that future hikes could be smaller.

Investors fear that rate hikes by the Fed and other central banks to cool inflation could push the global economy into recession.

The US central bank raised lending rates in March from nearly zero to 3 percent to 3.25 percent.

“The tone of Fed Chair Jerome Powell will be important” after this week’s meeting, IG’s Yeap Jun Rong said in a report. Investors are looking for “increased concerns about economic conditions” rather than the “current determination to tame inflation”. In Asian trade, the Nikkei 225 in Tokyo rose 1.8 percent to 27,587.46, as the government reported retail sales rose in September, though industrial production weakened.

The Shanghai Composite Index fell 0.8 percent to 2,893.48 after a manufacturing survey showed weakening production and demand. Hong Kong’s Hang Seng fell 1.2 percent to 14,687.02.

Seoul’s Kospi rose 1.1 percent to 2,293.61 and Sydney’s S and P-ASX 200 gained 1.2 percent to 6,863.50.

On Wall Street, the benchmark S and P 500 index rose 2.5 percent on Friday after US government data showed consumer prices rose 6.2 percent from a year earlier in September, the same as the stock price. of the previous month.

The Dow Jones Industrial Average rose 2.6 percent and the Nasdaq composite climbed 2.9 percent.

Core inflation, which removes volatile food and energy prices to show the underlying trend, accelerated to 5.1 percent from 4.9 percent in August.

Powell and other Fed officials have said they are ready to keep interest rates high until they are confident inflation has died down.

Also on Friday, government data showed that wage increases for American workers were in line with expectations. Powell has cited wages as a measure that the Fed will watch as it decides to raise interest rates.

In energy markets, the US benchmark lost 66 cents to $87.24 a barrel in electronic trading on the New York Mercantile Exchange on Monday.

The contract fell $1.18 to $87.90 on Friday. Brent crude, used to price international oils, fell 65 cents to USD 93.12 a barrel in London. It fell $1.19 to $95.77 on Friday.

The dollar rose to 148.27 yen from 147.53 yen on Friday. The euro fell from 99.55 cents to 99.35 cents.

(This story has not been edited by Devdiscourse staff and is automatically generated from a syndicated feed.)

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