Global Markets Mixed Ahead of Federal Reserve Meeting
By Dow Jones Newswires StaffStock markets were mixed early on Tuesday ahead of the Federal Reserve's two-day meeting, with markets pricing in a 97% chance of a 25 basis-point rate cut on Wednesday and 3% odds of a 50 basis-point reduction, according to LSEG data. Markets will closely watch Fed Chair Jerome Powell's comments for insights into the inflation outlook, labor market weakness and tariff-related risks. Separately, a U.S. appeals court rejected an emergency Trump administration request to remove Fed Governor Lisa Cook ahead of the meeting.On Monday, the S&P and Nasdaq closed at fresh record highs driven by a continuing surge in tech stocks and after the U.S. and China reached a framework deal over TikTok, signalling a potential cooling of trade tensions.Gold prices hit fresh record highs early Tuesday in Europe as Fed rate-cut expectations continued to pressure the dollar.U.S. stock futures were pretty much flat, while Asian shares closed mostly higher. South Korea and Japan continued to benefit from gains in chip and technology-related stocks, with South Korea's Kospi closing up 1.2%, a fresh record, as heavyweight SK Hynix ended the day up 5.1%. Japan's Nikkei closed up 0.3%. Hong Kong's Hang Seng gained 0.2% while China's benchmark Shanghai Composite was flat.In Europe, the pan-European Stoxx Europe 600 fell 0.2% in morning trading amid a muted start to trading across major national markets. Mining-sector stocks outperformed amid the rising optimism on a trade truce between the U.S. and China and gold's surge; Rio Tinto's London shares rose 1.5% while Glencore was up 1.2%. Gold and silver miner Fresnillo was up 3.6%.The U.S. dollar hit a two-month low against a basket of currencies and Treasury yields were marginally higher. Sterling rose to a two-month high against the weaker dollar but was flat against the euro. The yen also strengthened. Bitcoin rose 0.4%.Gold prices continued to push higher, extending a record run to hit a fresh high. Futures were recently up 0.3% to $3,730.80 after reaching $3,731.90 earlier in the session.Oil benchmarks slipped but held within a narrow range as investors await clarity on potential Western sanctions targeting Russian supplies. Brent crude and WTI both fell 0.5% to $67.12 and $63.02 a barrel, respectively.Write to Barcelona Editors at [email protected]