Global stocks de­cline ahead of Fed meet­ing

The Pak Banker - - MARKETS/SPORTS -

Global stocks de­clined Tues­day as in­vestors awaited this week's US Fed­eral Re­serve meet­ing, ex­pect­ing pos­si­ble in­sights into the state of global growth and fu­ture Fed moves.

In early trad­ing, Bri­tain's FTSE 100 fell 0.6 per­cent to 6,136.50, France's CAC40 fell 0.5 per­cent to 4,482.50 and Ger­many's DAX shed 0.4 per­cent to 9,945.74. On Mon­day, the DAX rose 1.4 per­cent and the CAC-40 and FTSE both added 0.4 per­cent. On Wall Street, fu­tures for the Dow Jones in­dus­trial av­er­age and Stan­dard & Poor's 500 in­dex both de­clined 0.4 per­cent.

Tokyo's Nikkei 225 lost 0.7 per­cent to 17,117.07 and Hong Kong's Hang Seng de­clined 0.7 per­cent to 20,288.77. Syd­ney's S&P ASX 200 fell 1.4 per­cent to 5,111.40 and In­dia's Sen­sex re­treated 0.9 per­cent to 24,580.54. Seoul's Kospi was off 0.1 per­cent at 1,969.97 and Tai­wan, Sin­ga­pore, Bangkok and Jakarta also fell. The Shang­hai Com­pos­ite In­dex gained 0.2 per­cent to 2,864.37 and New Zealand also rose. The Fed­eral Re­serve's Fed­eral Open Mar­ket Com­mit­tee meets Tues­day and Wed­nes­day. In­vestors don't ex­pect a rate hike but are watch­ing for in­di­ca­tions of pos­si­ble fu­ture Fed moves. In De­cem­ber the Fed raised in­ter­est rates for the first time in al­most a decade, but it left them un­changed in Jan­uary.

"The most an­tic­i­pated item on the U.S. eco­nomic cal­en­dar this week is the FOMC meet­ing, even though pol­icy will al­most cer­tainly be left on hold. With no change in rates, the fo­cus will be en­tirely on for­ward guid­ance," said Jim O'Sul­li­van of High­Fre­quency Eco­nom­ics in a re­port.

The Bank of Ja­pan left its mon­e­tary pol­icy un­changed Tues­day but down­graded its as­sess­ment of con­di­tions in the world's third-largest econ­omy, cit­ing risks from weaker growth in China and other emerg­ing economies and volatil­ity in fi­nan­cial mar­kets, among other fac­tors.

The dol­lar slipped to 112.99 from 113.79 yen. The euro edged up to $1.1108 from Mon­day's $1.1105. Bench­mark U.S. crude shed 82 cents to $36.36 per bar­rel in elec­tronic trad­ing on the New York Mer­can­tile Ex­change. The con­tract fell $1.32 on Mon­day to close at $37.18. Brent crude, used to price in­ter­na­tional oils, lost 84 cents to $38.69 per bar­rel in Lon­don. On Mon­day, the con­tract de­clined 86 cents to $39.53.

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