Before the release of US inflation data, global equities sway.
Investors awaited significant US inflation statistics that might play a major part in the Federal Reserve’s intentions to tighten monetary policy, dealers said, as world stock markets fluctuated and the currency was volatile Wednesday.
Traders were also expected to analyze minutes from the Fed’s most recent meeting as well as the start of the US earnings season, all while keeping an eye on global energy shortage fears.
Oil prices fell on Wednesday after rallying to multi-year highs earlier this week due to limited supply.
“Today, all eyes are on the US CPI inflation statistic, the minutes from the Fed’s latest meeting, and the start of earnings season with JPMorgan’s numbers due out,” Markets.com analyst Neil Wilson said.
“The Fed minutes will reveal how much inflation is a concern — we know the taper is on the way; the question is how soon the Fed moves to contain inflation by hiking rates.”
With the world’s largest economy on the mend, the Federal Reserve of the United States has already indicated that it will begin to phase down the substantial financial aid provided at the outset of the pandemic.
However, supply chain bottlenecks, skyrocketing demand fueled by reopenings, and rising fuel costs have pushed inflation to new highs in recent months, putting pressure on bank CEOs to act to keep prices from spiraling out of control.
Long periods of higher-than-targeted inflation are raising anticipation that the Fed will have to raise interest rates after its mammoth bond-buying program is completed.
On Wednesday in Europe, London equities fell 0.2 percent about midday, with miners being affected by concerns over commodity demand.
Investors ignored news that the UK economy grew by 0.4 percent in August compared to July.
Frankfurt’s main stock index climbed 0.7 percent, while Paris gained 0.3 percent in the eurozone.
Concerns about a worldwide energy shortage jangled nerves, causing Asian indices to trade mixed.
Tokyo, Sydney, Manila, and Taipei all fell, while Seoul, Singapore, Mumbai, Jakarta, and Wellington all rose. The city of Hong Kong was closed due to a typhoon.
Shanghai gained amid better-than-expected export statistics and ahead of China’s inflation data on Thursday.
The FTSE 100 index in London is down 0.2 percent at 7,114.65 points.
Frankfurt – DAX: 15,249.95, up 0.7 percent.
CAC 40 in Paris is up 0.3 percent at 6,565.35.
The EURO STOXX 50 Index is up 0.5 percent to 4,076.55 points.
Nikkei 225 in Tokyo is down 0.3 percent at 28,140.28. (close)
Shanghai Composite: 3,561.76, up 0.4 percent (close)
The Hang Seng Index in Hong Kong has been closed due to the storm.
New York – The Dow Jones Industrial Average is down 0.3 percent at 34,378.34. (close)
Euro/dollar:. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.