rainn.png
Friday February 3rd, 2023 1:10AM

Global shares decline ahead of Fed decision on rates

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — Global shares mostly declined Wednesday as investors looked ahead to a widely expected interest rate hike by the U.S. Federal Reserve to try to tamp down the highest inflation in decades.

France's CAC 40 fell nearly 0.1% in early trading to 5,974.93, while Germany's DAX lost 0.2% to 12,648.87. Britain's FTSE 100 gained 0.6% to 7,235.02. The future for the Dow industrials was up 0.1% at 30,828.00. The S&P 500 future rose 0.1% to 3,875.75.

Japan's benchmark Nikkei 225 dipped 1.4% to finish at 27,313.13. Australia's S&P/ASX 200 dropped 1.6% to 6,700.20. South Korea's Kospi lost 0.9% to 2,347.21. Hong Kong's Hang Seng shed 1.8% to 18,444.62, while the Shanghai Composite slipped 0.2% to 3,117.18.

Global tensions are adding to uncertainties. Russian-controlled regions of eastern and southern Ukraine have announced plans to start voting this week to become integral parts of Russia.

The Kremlin-backed efforts to swallow up four regions could set the stage for Moscow to escalate the war against Ukraine. Russian President Vladimir Putin recently blasted what he described as U.S. efforts to preserve its global domination and ordered officials to boost weapons production.

“Asian equities traded in a defensive mode on Wednesday. There were some geopolitical tensions concerning Russia and Ukraine, where the separatists are to hold a referendum in some regions, and traders were expecting an update from Putin,” Anderson Alves at ActivTrades said in a commentary.

Traders are focused on how high the Fed will raise interest rates at its meeting that ends Wednesday, not on whether it will happen.

Bond yields mostly edged higher. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.56% from 3.52% from late Monday and is trading at its highest levels since 2011.

The yield on the 2-year Treasury, which tends to follow expectations for Fed action, held steady at 3.95%, hovering around its highest levels since 2007.

Stocks have been slumping and Treasury yields rising as the Fed raises the cost of borrowing money in hopes of slowing down the hottest inflation in four decades.

Fed Chair Jerome Powell bluntly warned in a speech last month that the rate hikes would “bring some pain.”

The Fed is expected to raise its key short-term rate by three-quarters of a point for the third time. That would lift its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%, the highest level in 14 years, and up from zero at the start of the year.

Beyond that, investors will be focused on what Powell has to say, both in the Fed's latest interest rate policy statement and during an afternoon press conference, for clues as to whether the central bank remains primarily focused on lowering inflation, or if there's a hint the Fed is giving more consideration to the impact of higher rates on the economy.

Wall Street is worried that the rate hikes could go too far in slowing economic growth and push the economy into a recession.

The U.S. isn't alone in suffering from hot inflation or dealing with the impact of efforts to fight high prices.

The Bank of Japan began a two-day monetary policy meeting Wednesday, although analysts expect the central bank to stick to its easy monetary policy. Rate decisions from Norway, Switzerland and the Bank of England are next.

In energy trading, benchmark U.S. crude rose $2.22 to $86.16 a barrel in electronic trading on the New York Mercantile Exchange. It fell 1.5% Tuesday, weighing down energy stocks. Brent crude, the international standard, added $2.34 to $92.96 a barrel.

In currency trading, the U.S. dollar inched up to 143.81 Japanese yen from 143.74 yen. The euro fell to 99.01 cents from 99.73 cents.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2023 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
UK government caps energy bills for businesses for 6 months
Britain’s government says it will cap wholesale energy bills for businesses this winter to ensure companies don’t go bust amid soaring energy prices
5:23AM ( 5 minutes ago )
Putin sets partial military call-up, won’t ‘bluff’ on nukes
Russian President Vladimir Putin has announced a partial mobilization of reservists in Russia
5:22AM ( 6 minutes ago )
Global shares decline ahead of Fed decision on rates
Global shares have mostly declined as investors await a widely expected interest rate hike by the U.S. Federal Reserve as it strives to squash the highest inflation in decades
5:04AM ( 25 minutes ago )
Associated Press (AP)
Asian shares decline ahead of Fed decision on interest rates
Asian shares have mostly declined as investors looked ahead to a widely expected interest rate hike by the U.S. Federal Reserve in its bid to squash the highest inflation in decades
3:23AM ( 2 hours ago )
Putin announces partial mobilization for Russian citizens
Russian President Vladimir Putin has announced a partial mobilization in Russia as the fighting reaches nearly seven months
2:33AM ( 2 hours ago )
Putin announces partial mobilization for Russians
Russian President Vladimir Putin on Wednesday announced a partial mobilization in Russia as the fighting reaches nearly seven months
2:14AM ( 3 hours ago )
AP Business
Alaskans pocket over $3,000 in annual oil-wealth payments
Nearly every single Alaskan got a financial windfall amounting to more than $3,000 Tuesday
8:11PM ( 9 hours ago )
One year later, growing global perils as Biden returns to UN
President Joe Biden is confronting difficult issues as he travels to New York this week for the annual gathering of world leaders at the U.N. General Assembly
6:28PM ( 11 hours ago )
'Our world is in peril': At UN, leaders push for solutions
The world’s problems are seizing the spotlight as the U.N. General Assembly’s yearly meeting of world leaders opens
6:24PM ( 11 hours ago )
AP Business - Economy
US markets subdued ahead of Fed meeting
U.S. futures veered lower one day after a flurry of late buying sent stocks higher ahead of the Federal Reserve’s expected interest rate hike
8:41AM ( 20 hours ago )
Global shares mostly gain as investors await Fed rate hike
Global shares are mostly higher as investors await an interest rate increase by the U.S. Federal Reserve
5:09AM ( 1 day ago )
Asia shares rise on US rally ahead of expected Fed rate hike
Asian shares have advanced after Wall Street closed higher on a last-minute buying spree following recent losses
2:39AM ( 1 day ago )
AP Business - Financial Markets
4 Ukrainian regions schedule votes this week to join Russia
The separatist leaders of four Russian-controlled areas of Ukraine say they are planning to hold referendums this week for the territories to become part of Russia as Moscow loses ground in the war it launched
5:40PM ( 11 hours ago )
Manchin rails against 'revenge politics' on permit plan
Sen. Joe Manchin on Tuesday railed against what he called “revenge politics″ being used against him, as liberals in the House and Senate team up with Republicans to oppose his plan to speed permits for natural gas pipelines and other energy projects
5:09PM ( 12 hours ago )
Beyond Meat executive charged with biting man in fight
A top executive at plant-based food company Beyond Meat has been charged with felony battery after a fight outside a college football game in which he was accused of biting a man’s nose
4:46PM ( 12 hours ago )
AP Business - Industries
Europe's central bank to use climate scores as it buys bonds
The European Central Bank says it will give corporations climate scores before it buys their bonds and intends to prioritize those doing more to reveal and reduce greenhouse gas emissions
1:01PM ( 1 day ago )
How much 'pain'? Fed to signal more rate hikes ahead
Federal Reserve Chair Jerome Powell bluntly warned in a speech last month that the Fed’s drive to curb inflation by aggressively raising interest rates would “bring some pain.”
10:01AM ( 1 day ago )
Asian shares slip following broad decline on Wall Street
Asian shares are down after another week of sizable losses on Wall Street, as investors braced for another interest rate hike by the U.S. Federal Reserve
2:24AM ( 2 days ago )
AP Business - Financial Services
UK government caps energy bills for businesses for 6 months
Britain’s government says it will cap wholesale energy bills for businesses this winter to ensure companies don’t go bust amid soaring energy prices
5:23AM ( 6 minutes ago )
Putin sets partial military call-up, won’t ‘bluff’ on nukes
Russian President Vladimir Putin has announced a partial mobilization of reservists in Russia
5:22AM ( 6 minutes ago )
Some 230 whales beached in Tasmania; rescue efforts underway
About 230 whales are stranded on Tasmania’s west coast, just two days after 14 sperm whales were found beached on a nearby island
5:04AM ( 25 minutes ago )
Australian Indigenous traditional owners halt gas drilling
Indigenous traditional owners have won a court challenge that prevents an energy company from drilling for gas off Australia’s north coast
4:59AM ( 30 minutes ago )
China dials down Taiwan rhetoric; US, Canada transit strait
China has toned down its rhetoric on Taiwan, saying it is inevitable that the self-governing island will come under its control but that it would promote efforts to achieve that peacefully
4:50AM ( 39 minutes ago )