- Asian stocks were mixed on Wednesday as investors awaited the Federal Reserve meeting outcome today at 7 PM BST. Trading volumes were muted due to holidays in Hong Kong and South Korea. U.S. stock index futures showed mild gains in Asian trade.
- Chinese markets barely moved as trading resumed after a two-day holiday. Sentiment remains weak following recent poor economic data. The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes traded near 7-month lows.
- Japan’s Nikkei 225 was the best performer, rising 0.7%, while the TOPIX added 0.2%. Investors are awaiting the Bank of Japan meeting later this week, with expectations for unchanged rates but a hawkish tone with data from 0:50 AM BST showing drop of the shipments to the U.S. for the first time in three years.
- Gold prices rose slightly, keeping recent record highs in sight as traders anticipate Fed rate cuts. Spot gold increased 0.2% to $2,574.15 an ounce.
- Oil prices fell in Asian trade after API data showed an unexpected increase in U.S. inventories. Brent crude futures dropped 0.4% to $73.41 a barrel, while WTI crude futures fell 0.4% to $69.69 a barrel ahead of inventories data at 3:30 PM BST today.
- The dollar ceded some overnight gains, dropping sharply against the yen. The euro also advanced, clawing back most of the previous day’s decline and is awaiting CPI data at 10 AM BST.
- Traders are split between expectations for a 25 or 50 basis point Fed rate cut. CME Fedwatch shows a 65% probability of a 50 bps reduction.
- Japan’s export growth slowed sharply in August, with shipments to the U.S. dropping for the first time in three years. Core machinery orders unexpectedly declined 0.1% in July.
- Tupperware Brands filed for Chapter 11 bankruptcy protection, citing declining demand and increasing costs.
- Nippon Steel Corp won an extension in the security review of its $14.1 billion pursuit of United States Steel Corporation, potentially pushing a decision past the U.S. elections in November.
- Meta Platforms is facing a potential hefty fine in the EU over alleged efforts to dominate the classified advertising market.
- BlackRock and Microsoft announced plans to launch a $30+ billion fund to invest in AI infrastructure for data centers and energy projects.
- EURUSD is up 0.05%. Silver dropped 0.92% and gold only 0.1%. Cryptocurrency market is also waiting for the FED after yesterday’s gains; currently Bitcoin is flat and Ethereum is trading 1% lower.
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