Asian, Australian, European, African, London, US and Latin American markets closed with mixed performances on Wednesday as global investors positioned themselves ahead of the US Federal Reserve’s expected interest rate cut. Commodities and currencies reflected the uncertainty, with gold surging to new highs and oil prices edging lower.
Asia
Asian markets showed a split picture. Japan’s Nikkei managed a modest gain of around 0.2% near record levels, while Hong Kong’s Hang Seng closed higher, supported by renewed optimism in property and technology shares. Mainland Chinese indices were subdued, with investors cautious over ongoing political and economic headwinds. Elsewhere in the region, emerging markets such as Indonesia and Thailand benefited from earlier rate cuts, bolstering optimism for near-term growth.
Australia
In Sydney, the ASX 200 fell by roughly 0.7%, weighed down by property, retail, materials and healthcare stocks. Utilities, energy and technology managed to outperform, softening the losses. The Australian dollar slipped slightly as traders awaited clarity on US monetary policy, reflecting sensitivity to global capital flows.
Europe
European trading closed flat to slightly lower as investors balanced local inflation data against global interest rate expectations. The euro was little changed, moving in tandem with the dollar, as markets adjusted ahead of the Fed’s announcement. Most regional indices ended the session without significant movement.
London
London’s FTSE 100 saw minor declines, after a brief intraday rally supported by consumer goods and luxury names including Burberry. Inflation data for August confirmed price growth at around 3.8%, reinforcing expectations that the Bank of England will hold off on policy changes until next year. Market volumes remained thin ahead of US central bank guidance.
United States
On Wall Street, the S&P 500 and Nasdaq ended slightly lower, while the Dow Jones closed in positive territory. Traders have largely priced in a 25-basis-point cut by the Federal Reserve, but attention remains on Chair Jerome Powell’s forward guidance. The US dollar strengthened marginally, while gold hit fresh record levels. Oil prices eased on demand concerns despite continuing supply risks linked to global tensions.
Africa and Latin America
African and Latin American markets saw more muted activity, with sentiment broadly tied to global risk appetite and commodity prices. Expectations of US monetary easing buoyed some emerging market currencies, but volatility in oil and metals weighed on exporters. No major regional index swings were reported, reflecting limited liquidity in the lead-up to the Fed decision.
Key takeaway
Markets across continents reflected caution and divergence, with equities mixed, currencies adjusting around the dollar, and commodities showing sharper moves. The focus now turns squarely to the US Federal Reserve, whose policy statement and outlook are expected to set the tone for global risk assets in the coming weeks.
Editorial – Newshub
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