Photographer: Keith Bedford/Bloomberg
Photographer: Keith Bedford/Bloomberg
Stocks in Asia were mixed on Wednesday, with markets in a holding pattern awaiting the Federal Reserve’s policy decision. Treasuries and the dollar were flat.
Share gauges in Tokyo and Hong Kong were little changed, while equities retreated in Seoul and Sydney. European and American stock futures were flat. The S&P 500 Index on Tuesday edged back from a record high amid a raft of earnings in a lackluster session. The pound was flat after U.K. Prime Minister Boris Johnson won backing in Parliament for a Dec. 12 election.
The Fed is widely expected to lower rates again Wednesday, having already cut in July and September. For markets, the key will be the tone of Chairman Jerome Powell’s press conference later in the day, with investors trying to ascertain the trajectory of policy heading into next year. Complicating matters are the ongoing trade tensions that recently showed signs of easing.
“I don’t think we should fear a hawkish cut, but I do think one of the things to keep in mind, relative to the prior cut periods, is the Fed starting from a much lower rate so there is a lot less room for the Fed to continue to cut,” Carol Schleif, deputy chief investment officer at Abbot Downing Investment Advisors, told Bloomberg TV. “But we are pretty constructive — cautious but constructive on markets.”
Elsewhere, oil edged lower as this week’s decline grew amid supply concerns. The lira slipped after the U.S. House voted to sanction Turkey over Syria.
Thomas Simons, senior money market economist at Jefferies, discusses his firm’s call for the Federal Reserve to hold steady on interest rates at this week’s meeting.
Here are some key events coming up this week:
- Earnings include: Airbus, Apple, Credit Suisse, Facebook and PetroChina on Wednesday; Mitsubishi Heavy on Thursday; Exxon Mobil and Macquarie Group on Friday.
- The Fed is expected to lower the main interest rate when policy makers decide on Wednesday.
- U.S. economic growth is forecast to have slowed to 1.6% in the third quarter. GDP data are due Wednesday. The Fed’s preferred inflation metric, the core PCE deflator, is due Thursday.
- The Bank of Japan sets policy on Thursday and Governor Haruhiko Kuroda will hold a news conference.
- Friday brings the monthly U.S. non-farm payrolls report.
These are some of the main moves in markets:
Stocks
- Japan’s Topix index rose less than 0.1% as of 10:30 a.m. in Tokyo.
- Hong Kong’s Hang Seng Index slipped 0.1%.
- The Shanghai Composite lost 0.2%.
- South Korea’s Kospi fell 0.6%.
- Australia’s S&P/ASX 200 Index dropped 0.7%.
- Futures on the S&P 500 Index were little changed. The underlying gauge slipped 0.1% on Tuesday.
Currencies
- The yen was flat at 108.85 per dollar.
- The offshore yuan was little changed at 7.0644 per dollar.
- The Bloomberg Dollar Spot Index was little changed.
- Britain’s pound was flat at $1.2868.
- The euro bought $1.1111.
Bonds
- The yield on 10-year Treasuries was little changed at 1.83%.
- Australia’s 10-year yield slid four basis points to 1.14%.
Commodities
- Gold rose 0.1% to $1,489.20 an ounce.
- West Texas Intermediate crude decreased 0.4% to $55.31 a barrel.
— With assistance by Matthew Miller, and Vildana Hajric
