Global stocks are mixed on Wednesday ahead of the Fed’s monetary policy meeting. The trade hopes gave wings to the Asian stock exchanges, which ended the trading session with rises, but the sentiment of investors worsened during early trading in Europe, pushing the main stock indexes slightly down.
Investors’ focus is on the end of the two-day US Federal Reserve meeting, and later Wednesday, Governor Jerome Powell will hold a press conference announcing the regulator’s decision.
At the same time, the markets continue to monitor the development of the preparations for the upcoming meeting of the US President Donald Trump with his Chinese counterpart Xi Jinping, which will be part of the G20 Forum later this month.
On the focus of the markets was also the criticism of Donald Trump against European Central Bank (ECB) President Mario Draghi for his proposal of more stimulus for the Eurozone. Trump accused Draghi of currency manipulation after the euro fell sharply in reaction to his speech. He then went on to leave open the possibility of demoting Federal Reserve Chairman Jerome Powell, ahead of Wednesday’s crucial monetary policy meeting.
Asian markets recap
The main stock indexes in the Asia-Pacific region ended today’s trading session into the green, boosted by the optimism surrounding the positive developments with the upcoming talks between US President Donald Trump and Chinese leader Xi Jinping at the G20 summit.
In China, the mainland index Shanghai Composite advanced by 0.96% to 2,917.80 points. The Hong Kong’s benchmark Hang Seng added 638.12 points, or 2.32%, ending the day at a level of 28,136.89 points. The shares of the insurance company AIA rose by more than 3.5%.
In Japan, the blue-chip index of the Tokyo Stock Exchange Nikkei 225 rose by 361.16 points, or 1.72%, to 21,333.87 points. Japanese exports are down for the sixth consecutive month in May, as supplies of semiconductor and automotive production equipment to China are weakening, which is a sign of worsening prospects for economic growth. Data from the Japanese Ministry of Finance show that exports in May fell by 7.8% YoY for the sixth consecutive month. Exports to the United States grew by 3.3% from the beginning of the year to the end of May, driven by a 9.9% increase in car deliveries, while imports declined by 1.6%, with crude oil being the main factor. Exports to China, which is Japan’s largest trading partner, declined by 9.7% in May, reporting a third consecutive month of decline. The stocks of Apple’s supplier Japan Display rose by 10.91% after the Wall Street Journal released an article stating that the US technology giant could help its partner.
In South Korea, local index Kospi rose by 1.24% to 2,124.78 points. The shares of Samsung Electronics are up by 2.25%, while SK Hynix added 5.99%.
Australian index S&P ASX 200 rose by 78.10 points, or 1.19%, to 6,648.10 points. The shares of mining company Rio Tinto rose by 1.94%, while those of Fortescue Metals Group added 2.82% to their value.
European markets mid-session recap
European stocks edged slightly lower on Wednesday in a volatile and nervous session. The pan-European index STOXX 600 is down by 0.15% to 384.20 points after falling to a daily low of 383.57 points in opening deals. The retail stocks leading the losses with a 1.2% decline, while autos were by far the strongest performing sector, climbing by 0.7%.
German index DAX 30 inched lower by 3.87 points, or 0.03%, to 12,327.88 points at 10:00 GMT. The silicon wafer supplier Siltronic added 3.7% during the morning session, while the chemical giant BASF climbed 1.6%. The stocks of carmakers Volkswagen, BMW and Daimler were also into the green, adding 0.3%, 0.7%, and 0.8%, respectively. The shares of Deutsche Bank and Commerzbank rose by 1.9% and 1.4%, respectively. On the flip side was technology giant SAP, which is trading down by 0.5%.
French index CAC 40 is fell by 0.12% to 5,503.23 points at mid-session trading. The stocks of the carmakers Renault and Peugeot are up by 0.4% and 1.1%, while those of banks Societe Generale and BNP Paribas added 0.9% and 0.8%. The aircraft manufacturer Airbus sank by 0.8%, whose airline Air France KLM declined by 3.8%.
British blue-chip index FTSE 100 is down by 0.27% to 7,422.83 points. The UK economic data published Wednesday showed the country’s inflation rate cooling in May, with cost pressures in factories falling to a three-year low. Consumer prices rose to an annual rate of 2% in May, matching expectations. The stocks of British Airways owner IAG fell 4% to a two-and-a-half-year low and easyJet dropped 2.6% after HSBC downgraded the stocks after German airline Lufthansa’s profit warning this month. British American Tobacco, Imperial Brands and Diageo, which get a chunk of their revenue in US dollars, weakened as sterling recovered from five-month lows. Berkeley fell 2% after reporting a drop in earnings. Rivals Taylor Wimpey, Persimmon and Barratt also fell.
Wall Street pre-session recap
Wall Street stock index futures were marginally higher on Wednesday morning, as investors wait to hear from Federal Reserve Chairman Jerome Powell.
Around 6 a.m. ET, Dow futures indicated a positive open of nearly 20 points. Futures on the S&P and Nasdaq were both slightly higher, too.
There are no data items to note Wednesday.
In terms of corporate earnings, Oracle and Winnebago will be updating investors.