World shares waver as investors await Fed decision on rates

World shares waver as investors await Fed decision on rates

Share markets were stuck on their worst run since November on Monday, as caution gripped traders in a week in which the Federal Reserve is likely to raise USA interest rates and perhaps signal as many as three more lie in store this year.

A man looks at an electronic stock quotation board outside a brokerage in Tokyo, Japan February 9, 2018.

The futures market implied traders widely expected Fed policymakers would raise key borrowing costs by a quarter point to a target range of 1.50 percent to 1.75 percent after the conclusion of a two-day meeting on Wednesday.

New Zealand has a monetary policy decision Thursday.

The pan-European STOXX 600 index was down 0.2 percent by 0956 GMT, as more cyclical sectors such as financials, materials and industrials retreated.

Oil prices traded higher as Brent crude futures rose 0.93 percent to trade at $68.05 per barrel, while US WTI crude futures gained 0.88 percent to trade at $64.10 a barrel.

The Fed has raised rates five times since it began tightening policy in late 2015.

It will also be the first press conference for new Fed Chair Jerome Powell.

Analysts at JPMorgan, however, see a risk the Fed might not only add one more rate rise for this year but for 2019 as well.

The caution also came against the backdrop of global trade war worries which are set to dominate a two-day G20 meeting starting later in Argentina as well as plenty of idiosyncratic factors.

More news: Korea to send heavyweights of K-pop to North Korea
More news: Johnson faces risky group at WGC-Dell Match Play
More news: Texas bomber suspect kills self as police close in, officials say

Wall Street gained late on Wednesday morning, ahead of an imminent USA interest rate hike, as Facebook Inc's (FB.O) shares reversed course to trade higher and energy stocks got a boost from surging oil prices.

Japanese markets fell as tech stocks followed their US peers lower on reports Facebook allowed improper access to user data.

"We remind readers that every single FOMC rate hike this cycle has been a "dovish hike" and the United States dollars has declined on the day (s) post the rise", Richard Grace, chief currency strategist at Commonwealth Bank of Australia wrote in a note to clients.

US President Donald Trump is expected to unveil up to $60 billion in import duties on Chinese goods by Friday.

Investors are also nervous by signs of a brewing global trade war after the Wall Street Journal reported that China was planning counter-measures against USA trade tariffs.

Cole said he remained moderately bullish on the dollar, because the Fed's raising rates faster than other central banks supported the currency.

Elsewhere, the three-month dollar London interbank funding rate continued its advance, rising to 2.27 percent Wednesday, the highest since November 2008. The Canadian dollar CAD=D4 held at $1.3029 from Monday's low of $1.3124, a level not seen since mid-2017.

The dollar rebounded from Monday's losses against the yen following comments from Masayoshi Amamiya, one of the two new deputy governors at the Bank of Japan.

The big four banks rose between 0.6 percent and 1 percent while mining heavyweight Rio Tinto ended on a flat note after ruling out special dividend before the company's half-year results in August.

Fears of a trade war have also weighed on commodity prices, though tensions in the Middle East supported oil, lifting Brent futures LCOc1 nearly half a percent.

Related Articles

  • Investors watching Analysts Rating — NVIDIA Corporation (NVDA)

    Welling decreased its stake in Benchmark Electrs Inc (BHE) by 16.51% based on its latest 2017Q3 regulatory filing with the SEC. Impala Asset Limited Liability holds 0.08% of its portfolio in NVIDIA Corporation (NASDAQ:NVDA) for 9,927 shares. (NYSE:BHE).
    Rahul to interact with students on concluding day of Karnataka tour

    Rahul to interact with students on concluding day of Karnataka tour

    Basavanna believed in the principle of "follow what you promise" ( nudidante nade in Kannada). Rahul also lauded the state's youth for the IT revolution which they lead in Karnataka.
    Death Toll Rises To 26 In Kabul Explosion

    Death Toll Rises To 26 In Kabul Explosion

    According to a report, PD3 area Police Chief Abdulhamid Chakari confirmed a auto bomb was used in the explosion. An ambulance packed with explosives killed more than 100 people in the Chicken Street shopping area .
  • Oklahoma star Trae Young leaving for National Basketball Association  draft after standout freshman season

    Oklahoma star Trae Young leaving for National Basketball Association draft after standout freshman season

    He also exits as the OU record holder for any class in scoring average (27.4), assist average (8.7) and made foul shots (236). When Curry was at Davidson he would will his team to wins, but Young wasn't able to do that at Oklahoma.
    Chelsea ready to rescue Luke Shaw from Manchester United

    Chelsea ready to rescue Luke Shaw from Manchester United

    Having briefly enjoyed a renaissance at Old Trafford, a 22-year-old talent finds himself back in the firing line. Matic, though, who has been one of the club's most important players this season, hailed his manager.
    Indians killed in Iraq: Devastated families demand DNA test reports

    Indians killed in Iraq: Devastated families demand DNA test reports

    Briefing media persons here, Sushma Swaraj said her government did not believe in declaring a person "missing, believed killed". However, the details still remain unclear as to what steps the following government will be taking in the matter.
  • Shares Aiming Higher Pre-Bell: Royal Dutch Shell plc (:RDS-A)

    The volatility for RDS-A induces investors, expressing week volatility volume of 1.31% and the month volatility volume of 1.44%. Royal Dutch Shell plc (RDS-A) ticked a yearly performance of 18.70% while year-to-date (YTD) performance stood at -6.75%.
    Men's tournament roundup: Magic ends as UMBC eliminated

    Men's tournament roundup: Magic ends as UMBC eliminated

    The South Regional has been filled with upsets, leaving No. 5 seed Kentucky as the highest-ranked team in the region. Oddly, Virginia does well when it finds itself in matchups against teams that use zone as their base defense.
    Sensex closes 139 points up despite erasing half of intra-day gains

    Sensex closes 139 points up despite erasing half of intra-day gains

    China's Shanghai Composite index was quoting in green, up by 0.43 per cent. On Wednesday, Asian indices were mostly showing a positive trend.
  • Trump required White House staffers to sign NDAs

    Trump required White House staffers to sign NDAs

    Debra Katz, an attorney who has represented whistleblowers, said something similar to the Post . There is pretty much zero chance that a court would allow such an agreement to be enforced.
    Actor Jackie Shroff's wife summoned by cops in Thane CDR scam

    Actor Jackie Shroff's wife summoned by cops in Thane CDR scam

    Recently Nawazzuddin Siddiqui's lawyer Rizwan Siddiqui was arrested by the Mumbai police in connection with the CDR scam. The police said that she and the actor had a dispute following which she allegedly sought the details to spy on him.
    Academic in Facebook case says he is a scapegoat

    Academic in Facebook case says he is a scapegoat

    It did so by scooping up data from the users' friends on the social network - as was possible under Facebook's rules at the time. The firm is accused of using the data of 50 million Facebook members to influence the 2016 U.S. presidential election.