- Peru's ex-president Toledo gets 20 years for corruption
- Chile launches vaccine that neuters dogs for a year
- Toxicology tests show Liam Payne had 'multiple' drugs in system: reports
- WNBA players union opts out of deal, now set to end in 2025
- Harris woos on-the-fence Republicans, Trump tours storm damage
- Henderson howler hands Forest victory over Crystal Palace
- Yankees and Dodgers to renew epic rivalry in World Series
- Stock markets mostly slide, oil jumps as China cuts rates
- Parents of Venezuela minors held after election ask UN to intervene
- NBA and Nike extend partnership deal for 12 years
- Israel strikes 300 Hezbollah targets as US urges war's end
- Tourist dreams turn sour after Cuba lights go off
- Italy PM seeks to save Albanian migrant deal amid spat with judges
- Tagovailoa returns to NFL practice Wednesday after concussion
- US infant mortality spiked after right to abortion overturned: study
- Blinken back to Middle East to push for Gaza truce
- Neymar returns for Al Hilal in Al Ain thriller
- TGL set for January start as Woods-McIlroy might meet Jan. 27
- US Grand Prix - three things we learned
- Welsh rugby's future more important to Gatland than saving his job
- Venezuela arrests ex-oil minister accused of US links
- President Biya lands back in Cameroon after health rumours
- Watson out for NFL season with ruptured Achilles tendon
- Disney expects to name Iger's successor in early 2026
- Emery wants to 'break barriers' at transformed Aston Villa
- Hezbollah-linked financial firm an economic lifeline for Lebanese
- London trial probes 2015 Brazil mine disaster
- Police in Mozambique disperse vote protest
- Ancelotti wants goals over pressing from Madrid star Mbappe
- Major crypto, diamond fraud trial opens in France
- Electricity restored to 50% of Havana after nationwide blackout: Cuba state media
- How much aid is getting into Gaza?
- King Charles caps Australia trip with Opera House bash
- England's Buttler out of West Indies ODI series
- Moldova president hails EU referendum win after Russia meddling claims
- Van Dijk talking to 'right people' over Liverpool contract
- Vietnam's top leader pushes anti-corruption fight
- Arteta urges Arsenal to use Bournemouth 'pain' against Shakhtar
- Rabada fastest to 300th Test wicket, as Bangladesh all out for 106
- Erdogan rival Gulen dies in exile at 83
- Man Utd's Ten Hag relishing Europa League clash with Mourinho
- Amnesty says migrant workers exploited at Carrefour Saudi stores
- Fethullah Gulen: ex-Erdogan ally who became public enemy number one
- Seoul demands 'immediate withdrawal' of North Korean troops in Russia
- WHO to evacuate 1,000 Gazan women, children for urgent medical care
- Erdogan's rival Fetullah Gulen dies in exile aged 83
- Gauff-led USA pitted with Canada at season-opening United Cup
- Sanofi pursues sale of painkiller after political controversy
- Rabada takes 300th wicket as Bangladesh stumble to 60-6 at lunch
- Alpacas, hecklers and climate warnings: King Charles visits Australia's capital
RBGPF | 1% | 61.11 | $ | |
JRI | -0.53% | 13.15 | $ | |
BCC | -2.78% | 137.9 | $ | |
NGG | -1.45% | 67.03 | $ | |
RYCEF | -0.68% | 7.4 | $ | |
CMSC | -0.53% | 24.65 | $ | |
SCS | -0.93% | 12.89 | $ | |
CMSD | -0.68% | 24.87 | $ | |
RIO | -0.63% | 64.95 | $ | |
RELX | -1.13% | 47.63 | $ | |
BCE | -0.45% | 33.39 | $ | |
VOD | -1.35% | 9.63 | $ | |
AZN | -1.06% | 77.44 | $ | |
GSK | -1.02% | 38.16 | $ | |
BP | 0.44% | 31.47 | $ | |
BTI | -0.73% | 34.25 | $ |
Most markets see much-needed gains as Fed's big day arrives
Most markets rose Wednesday to provide some respite from the hefty selling at the start of the week, with focus on the end of the Federal Reserve's policy meeting later in the day, when traders hope it will provide much-needed guidance on its plans for hiking interest rates.
After weeks of uncertainty, the US central bank will finally deliver its views on the state of the world's top economy and how officials plan to tackle inflation that is now at a four-decade high without knocking its recovery off course.
Minutes from its December gathering pointed to a more hawkish tilt, with plans to speed up the taper of its vast bond-buying programme, the selling of the assets it already has and three or four rate increases before the end of the year.
While boss Jerome Powell pledged any tightening would be carefully calibrated, the prospect of higher borrowing costs has rattled markets across the world with most key indexes deep in the red from the start of the year, with Wall Street particularly hard hit.
His comments after the meeting will be pored over for signs of the Fed's plans, which most commentators believe include a first hike in March.
Analysts were leaning positive ahead of the meeting.
Frances Stacy, at Optimal Capital, told Bloomberg Television that Powell would try to take a less hawkish tone, saying policy would be guided by data while supply chains were improving and inflation showed signs of peaking.
"I think what that's going to do is potentially reassure markets that the Fed 'put' is ready, willing and able," she said, referring to the bank's past in backstopping markets. "That could cause some serious enthusiasm and a short squeeze."
Michael Hewson at CMC Markets added: "While no changes to policy are expected... markets will be looking for clues as to how concerned Fed officials are about headline (consumer inflation) and whether they might be leaning towards a potential 50 basis point hike in March, rather than the 25 that is currently priced.
"Given the volatility this week, any sort of indication that Fed officials were leaning in this direction would be risky. However it wouldn't be beyond the realms of possibilities for them to put the idea out there."
Meanwhile, markets strategist Louis Navellier saw three rate hikes this year and that after the recent bout of selling across markets, buying opportunities were emerging.
"I'm very comfortable that we are going to have a bottom here soon. Remember, the market is a manic crowd," he said in a note.
After a second day of high volatility in New York, Asia enjoyed a little more stability.
Hong Kong, Shanghai, Singapore, Wellington, Jakarta and Bangkok rose, though Tokyo, Seoul, Taipei and Manila edged down. Sydney and Mumbai were closed for holidays.
London, Paris and Frankfurt rose healthily.
While there remains some optimism among analysts about the outlook, the International Monetary Fund on Tuesday lowered its growth outlook for the global economy saying it has started the year "in a weaker position than previously expected".
It said Omicron threatened to set back the recovery as countries impose containment measures, while other issues remained, including inflation and geopolitical tensions.
Included in those tensions is the standoff on the Ukraine-Russia border, with Moscow building up troop numbers and the West led by the United States warning the risk of an invasion "remains imminent".
US President Joe Biden said such a move would prompt "enormous consequences" and even "change the world", adding that he would consider imposing direct sanctions on Russian counterpart Vladimir Putin on top of a raft of measures being drawn up.
- Key figures around 0820 GMT -
Tokyo - Nikkei 225: DOWN 0.4 percent at 27,011.33 (close)
Hong Kong - Hang Seng Index: UP 0.2 percent at 24,289.90 (close)
Shanghai - Composite: UP 0.7 percent at 3,455.67 (close)
London - FTSE 100: UP 0.9 percent at 7,436.00
Euro/dollar: DOWN at $1.1292 from $1.1305 late Tuesday
Pound/dollar: DOWN at $1.3505 from $1.3507
Euro/pound: DOWN at 83.62 pence from 83.66 pence
Dollar/yen: UP at 114.03 yen from 113.87 yen
West Texas Intermediate: UP 0.2 percent at $85.73 per barrel
Brent North Sea crude: UP 0.3 percent at $88.50 per barrel
New York - Dow: DOWN 0.2 percent at 34,297.73 (close)
A.Santos--PC