Global markets mixed, pausing ahead of Fed chief testimony

TOKYO — Global shares were mixed Wednesday in cautious trading ahead of closely watched congressional testimony by the chairman of the U.S. Federal Reserve, Jerome Powell.

France's CAC 40 inched up less than 0.1% to 5,573.88 in early trading. Germany's DAX lost less than 0.1% to 12,431.43, while Britain's FTSE 100 fell nearly 0.1% to 7,529.10.

U.S. shares were set to drift lower with Dow futures slipping 0.2% to 26,738. S&P 500 futures dipped 0.1% at 2,978.70.

Investors are awaiting two days of congressional testimony by Powell. Traders will be listening to the exchanges with lawmakers on Wednesday and Thursday for hints about the Fed's next move on interest rates.

The market rallied through much of June after the central bank signaled it's prepared to cut rates to offset slowing global growth and the fallout from U.S. trade conflicts. But an unexpectedly strong U.S. jobs report last Friday has dimmed investors' expectations.

Many traders still expect the Fed will cut its benchmark rate by a quarter percentage point at the end of the month, but fewer are now expecting a half-point reduction.

The question is whether the Fed will still see a good argument for cutting interest rates after the strong U.S. June jobs data.

The Fed's benchmark interest rate currently stands in a range of 2.25% to 2.5% and the central bank has not cut rates since the Great Recession in 2008. Last year, Fed officials raised rates four times, partly to stave off the risk of high inflation and partly to try to ensure that they would have room to cut rates if the economy stumbled.

"The picking up of tech stocks overnight on Wall Street presents a positive lead for Asia markets, though risks persist with the Fed testimony ahead," said Jingyi Pan, market strategist for IG in Singapore.

"Fed Powell's testimony will be scrutinized for both his views on the economic situation and guidance in terms of any upcoming moves."

Japan's benchmark Nikkei 225 edged down nearly 0.2% to finish at 21,533.48. Australia's S&P/ASX 200 added 0.4% to 6,689.80. South Korea's Kospi gained 0.3% to 2,058.78. Hong Kong's Hang Seng rose 0.3% to 28,204.69, while the Shanghai Composite fell 0.4% at 2,915.30.

ENERGY: Benchmark crude oil added $1.17 to $59.00 per barrel. It gained 17 cents to $57.83 a barrel on Tuesday. Brent crude oil, the international standard, rose $1.16 to $65.32 a barrel.

CURRENCIES: The dollar rose to 108.89 Japanese yen from 108.86 yen. The euro rose to $1.1228 from $1.1208.

___

AP Business Writer Alex Veiga contributed to this report.

You may also like these

Australia reveals pre-poll plan to balance budget...

May 8, 2018

Australia reveals pre-poll plan to balance budget in 2 years while cutting taxes

Qantas bends to Beijing by describing Taiwan as...

Jun 5, 2018

Australia's foreign minister has expressed concern at Qantas Airways' decision to describe Taiwan...

Australia and Vanuatu to negotiate security treaty

Jun 25, 2018

Australia says it will negotiate a security treaty with Vanuatu, weeks after the Australian prime...

Australia to reopen island detention camp after...

Feb 13, 2019

Australia to reopen a mothballed island detention camp in anticipation of new migrant smuggling...

New Zealand leader says US lacks interest in...

Jul 19, 2019

New Zealand's prime minister says the United States is losing interest in the Asia-Pacific, as...

Search
Financial Markets

About Us

Established in 2015, The Upstocker provides insights on financial reports, commentary, and investment data to traders so that you can make better investment decisions.

Contact us: sales[at]theupstocker.com

Subscribe Now!