Market Buzz: Stocks trade mixed ahead of Fed’s QE decision
The Federal Open Market Committee (FOMC) will decide whether the
Fed will begin drawing down its $85 billion monthly bond-buying
program as the economy shows signs of picking up, or whether it
is still too early to end the stimulus measure.
Russian floors traded mixed on Tuesday amid growing oil prices, a
weakening ruble and the release of controversial macroeconomic
data: The MICEX closed up 0.74 percent to 1,335 and the RTS
closed flat at 1,314. Despite better-than-expected economic data
from Germany and gains on Wall Street, European shares close in
mixed territory on Tuesday.
The UK's FTSE 100 added 0.69 percent to end at 6,374.21, the
German DAX 30 added 0.17 percent to close at 8,229.51, and the
French CAC 40 slipped 0.08 percent to close at 3,860.55. Stocks
in Italy traded flat, while Spain’s IBGM rose 0.54 percent. US
stocks climbed on Tuesday, with investors apparently optimistic
about the FOMC: The Dow finished up 0.9 percent at 15,318.23, the
S&P 500 added 0.8 percent to 1,651.81 on strong gains in
industrial stocks, and the Nasdaq climbed 0.9 percent to
US housing starts rose 6.8 percent last month, according to fresh
data, and US consumer prices were slightly higher in May. As
investors look to Wednesday’s decision from the FOMC,
President Barack Obama hinted that Fed Chair Ben Bernanke will likely retire when his term ends in 2014.
Asian markets traded mostly lower on Wednesday, with investors
eying the FOMC: Hong Kong’s Hang Seng, Mainland China’s Shanghai
Composite and South Korea’s KOSPI all traded in the red.
The Hang Seng slipped 1.2 percent to 20,966.89 and the KOPSI
dropped 0.9 percent to 1,884.03. Stocks in New Zealand, the
Philippines, Singapore and Indonesia also fell. Tokyo enjoyed
another rally on a weaker yen, and reports showing export growth,
with the Nikkei rising 0.8 percent to 13,113.59.
Australia's S&P/ASX 200 index climbed 0.7 percent to
4,848.10, while benchmarks in Taiwan and Thailand also rose.
Oil is currently up, with Brent adding 0.15 percent to $106.10, and WTI adding 0.2 percent to $98.80.