Global markets pause as Fed prepares minutes

Global shares were little changed on Wednesday as investors kept their eyes peeled for the minutes of the most recent Federal Reserve meeting that could shed light on whether the US central bank may moderate its interest rate hikes. The Fed has raised rates sharply in a bid to curb surging inflation and New Zealand’s central bank earlier increased interest rates by a record 75 basis points to 4.25percent, a harbinger of possible hikes from the Fed, the European Central Bank and the Bank of England next month. The minutes of the Federal Open Market Committee are due later on Wednesday, and US markets are closed on Thursday for Thanksgiving. “There is an expectation that the Fed is probably closer to end of rate hiking cycle than the beginning; certainly to the extent of the rate hikes, the bulk are behind them,” said Mike Hewson, chief markets analyst at CMC Markets. “There is very little interest heading into the [ US] Thanksgiving weekend, and consequently markets are drifting higher on inertia. If you have made your money this year, you are most probably done,” Hewson said.

The MSCI All Country stock index was up 0.12percent, though it is still about 18percent lower so far this year. In Europe, the Stoxx 600 companies rose 0.1percent, leaving it down about 10percent for 2022. US stock futures, the S& P 500 e- minis, were slightly firmer. David Bizer, managing partner at investment manager Global Customised Wealth, said investors were being guided by what they think the Fed would do next, as signs of a slowdown in the US economy become clearer.