Global stocks mixed ahead of Fed’s rate decision
SEOUL, Korea, Republic Of — Global stock markets were mixed with European stocks getting off to a weak start on Wednesday ahead of the Federal Reserve’s decision on interest rates. The Fed was widely expected to announce later in the day an increase in the key policy rate for the first time in a year.
KEEPING SCORE: Britain’s FTSE 100 was down 0.2 per cent to 6,956.00. France’s CAC 40 lost 0.3 per cent to 4,787.58 while Germany’s DAX fell 0.2 per cent to 11,267.92. U.S. markets were set for a tepid opening with Dow futures nearly unchanged and S&P futures also remaining almost flat.
FED WATCH: Investors expect the Federal Reserve to announce a rate hike, the first since December 2015, at the end of the two-day Federal Open Market Committee meeting on Wednesday. Investors will listen for clues about future policy and the economic outlook under President-elect Donald Trump from Fed Chair Janet Yellen’s press conference. The central bank has kept rates low since the 2008 financial crisis.
ANALYST’S TAKE: “Against a backdrop of solid U.S. economic data, an improving jobs market and changes that the Trump Administration could potentially bring to the capital market, expectation for a 25 basis points rate hike by the Federal Reserve hit 100 per cent several weeks ago,” said Margaret Yang of CMC Markets.