Global Markets Mixed as All Eyes Turn to Fed Rate Decision
By Dow Jones Newswires StaffGlobal markets were mixed ahead of the Federal Reserve's latest policy decision, its last for this year. Markets are pricing in an 89% probability of a 25 basis point cut, according to LSEG data, but uncertainty remains over the Fed's stance on the direction of future moves. Futures for U.S. indexes nudged up slightly, while Europe opened to a mixed picture and Asian indexes slipped lower.U.S. indexes were largely up premarket, with the S&P 500 and tech-heavy Nasdaq both gaining 0.1%. The Dow Jones Industrial Index hovered around par following losses Tuesday.Asian markets closed mostly lower as caution dominated trading. Japan's Nikkei edged down 0.1%, while South Korea's Kospi was 0.2% lower. Chinese shares were mixed, with the tech-heavy ChiNext flat, while Shenzhen and Shanghai ended 0.2% and 0.3% lower, respectively. Inflation data was in focus as CPI beat expectations, but failed to sooth deflation fears. Chinese AI chip startup Moore Threads was among the top gainers, jumping 17%. Hong Kong's Hang Seng Index bucked the trend, rising 0.4%, while the gauge of tech stocks rose 0.5%. JGBs were mixed; 10-year yield was down 0.5 bps at 1.955%, the 30-year yield unchanged at 3.380%, and the 40-year yield was up 1 bp at 3.700%. 10-year Chinese government bond yield rose 1.24 basis points to 1.864%European indexes were mostly lower in early trading, with the Italian FTSE MIB the biggest early mover--down 0.4%--as Leonardo and Banca Mediolanum handed back some of Tuesday's gains. Gains for semiconductor companies nudged the Dutch AEX up 0.05%, even as Aegon drops 8%. The U.K. FTSE 100 climbed 0.1%, pushed up by miners. Elsewhere, the French CAC 40 fell 0.3%, while the Spanish IBEX 35 and German DAX were down 0.2% and 0.35% respectively.The dollar edged lower, reversing some of its gains in recent days and reflecting expectations that a rate cut could be followed by the Fed caution on the prospects of further cuts in the coming months. The DXY dollar index fell 0.1% to 99.082.Bitcoin traded steady, reversing much of its recent gains. The cryptocurrency rose in recent days on the prospect of the U.S. Federal Reserve cutting interest rates in a decision due Wednesday. Bitcoin traded steady at $92,644, having dropped back from Tuesday's three-week high of $94,621, according to LSEG data.U.S. Treasury yields edged lower in afternoon Asian trade, suggesting that investors have already positioned themselves ahead of the Fed's policy decision later today. The two-year Treasury yield last traded 0.4 basis point lower at 3.608%, and the 10-year yield was down 0.6 basis point at 4.179%, according to Tradeweb.Eurozone government bond yields rose in early trade, but these increases could fade as the market shifts its attention to the Federal Reserve's policy announcement. The 10-year Bund yield was up 1.6 basis points at 2.867%, staying close to the highest levels since March, according to Tradeweb.Oil prices held broadly steady as investors track diplomatic efforts to end the war in Ukraine. In early trade, Brent crude and WTI were both up 0.1% to $62.05 a barrel and $58.38 a barrel, respectively.Gold prices slipped in early trading, but continued to hold above the $4,200 mark. Futures in New York were down 0.1% to $4,231.10 a troy ounce, while spot gold fell 0.2% to $4,198.69 an ounce. Meanwhile, silver futures soared to fresh records, with futures now trading above $61 an ounce.Write to Barcelona Editors at [email protected]