· Global shares hold near record peak ahead of Fed
Global shares held near record highs in Asia on Wednesday, while currency markets and U.S. Treasuries were steady, as investors awaited an expected unwinding of pandemic-era monetary stimulus in the world’s largest economy.
Markets are almost certain the Fed will taper but are looking to see if policymakers will give any hints about the possibility of interest rate hikes next year.
MSCI’s all-country world index, which tracks equity performance in 50 nations, was down 0.01%, just off the record high it hit on Tuesday as European U.S. shares surged on strong corporate earnings.
In Asia, the regional benchmark has been trending down since early this year, and is off more than 13% from its February peak, as it struggles to rebound from sweeping regulatory changes in China in the summer, which roiled sectors from property to technology.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.33% on Wednesday, weighed by declines in Hong Kong and mainland China. Japanese markets were closed for a public holiday.
On Thursday, the Hong Kong benchmark lost 1% and Chinese bluechips shed 0.72%. Investors are now looking ahead to a major Chinese Communist Party gathering to be held Nov. 8-11.
Also in central bank news, the Bank of England on Thursday could become the first of the world’s major central banks to raise rates after the coronavirus crisis.
· European markets flat ahead of key Fed decision
European stocks were muted Wednesday morning as investors prepared for the latest comment and monetary policy decision from the U.S. Federal Reserve.
The pan-European Stoxx 600 hovered around the flatline in early deals, with oil and gas stocks dropping 1.8% while miners gained 1.4%.
Investors around the world will be closely following the latest decision from the U.S. Federal Reserve on Wednesday.
Reference: CNBC,Reuters
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