Global Stocks Rise Ahead of Fed Rate Decision
Global equity markets advanced Wednesday as investors braced for a Federal Reserve rate hike, the first in three years.
Global shares rose Wednesday despite losses on Wall Street, as investors awaited the Federal Reserve's decision on interest rates. The potential hike marks the first increase in three years amid elevated U.S. inflation.
European indices opened higher. Britain's FTSE 100 rose 0.2% to 10,681.92. France's CAC 40 climbed 0.2% to 8,103.73. Germany's DAX edged up 0.1% to 25,424.65.
Asian markets defied trade deficits
Japan's Nikkei 225 gained 0.7% to 63,923.00 despite a fourth consecutive monthly trade deficit. South Korea's Kospi rose 1.4% to 6,717.97. Hong Kong's Hang Seng edged up 0.2% to 24,713.78.
China's Shanghai Composite index climbed 0.7% to 3,891.60. Australia's S&P/ASX 200 added 0.3% to 8,696.50. India's Sensex gained 0.4% in early trading.
AI stocks show mixed performance
AI-related equities remained volatile after U.S. leaders called for slower development. SoftBank Group dropped 1.5% following a previous 7.5% gain. Tokyo Electron rose 2.1%, while Kioxia Holdings lost 1.9%.
South Korea's SK Hynix climbed 4.1%. Samsung Electronics was up 2%. Taiwan's TSMC fell 0.2% despite the broader market advance.
Oil prices dip on supply fears
Brent crude fell 0.4% to $108.34 a barrel. U.S. benchmark crude dropped 0.9% to $104.86. Prices remain well above pre-war levels near $72.
The 10-year U.S. Treasury yield stood at 5%. This follows a brief touch of 5.04%, a multi-year high. The U.S. dollar fell to 155.08 Japanese yen. The euro traded at $1.1541.
