Global Markets: Stocks dip ahead of Fed news; oil prices drop
By David Randall NEW YORK (Reuters) - Global equity markets dipped on Tuesday as nervous investors awaited indications whether the Federal Reserve will be able to raise interest rates much further amid turbulent markets and a weakening outlook for the global economy.
By David Randall
NEW YORK (Reuters) - Global equity markets dipped on Tuesday as nervous investors awaited indications whether the Federal Reserve will be able to raise interest rates much further amid turbulent markets and a weakening outlook for the global economy.
Energy stocks weighed on the U.S. market as oil price declines deepened.
Steep drops in equity markets over the last two months have sapped investor confidence, spurring fund managers to predict global growth to weaken over the next 12 months, the worst outlook in a decade, Bank of America Merrill Lynch's December investor survey showed.
MSCI's world stock index <.MIWD00000PUS> fell 0.3 percent. The index is down 10 percent this year and is set for its worst year in a decade.
U.S. stocks eked out modest gains amid volatile trading as investors weighed strong tech earnings against concerns about global growth.
The Dow Jones Industrial Average <.DJI> rose 82.66 points, or 0.35 percent, to 23,675.64, the S&P 500 <.SPX> gained 0.22 points, or 0.01 percent, to 2,546.16 and the Nasdaq Composite <.IXIC> added 30.18 points, or 0.45 percent, to 6,783.91.
The Dow had been up by more than 250 points in midday trading.
The benchmark S&P 500 <.SPX> index began the trading session almost 8 percent lower for December.
"We're facing the biggest December fall in U.S. stocks since 1931 and this is striking and worrying at the same time," said Chris Bailey, European strategist at international financial services firm Raymond James. "We are at a regime shift moment, and the debate is how big that regime shift will be."
A speech by Chinese President Xi Jinping, which investors had hoped could lift morale, had little impact after he offered no specific support measures for the economy. Chinese shares fell over 1 percent <.CSI300> <.HSI>. Japan's Nikkei <.N225> lost 1.8 percent.
Adding to the gloomy mood, the German Ifo economic institute's business climate index fell for the fourth month in a row to its lowest level in more than two years and Japan's government revised down its economic growth forecasts.
On Monday, U.S. President Donald Trump and his top trade adviser stepped up their criticism of the Fed's monetary tightening, raising investor anxiety.
Benchmark 10-year notes
U.S. crude futures settled down 7.3 percent while Brent settled down 5.6 percent, weakening for a third consecutive session on reports of swelling inventories and forecasts of record U.S. and Russian output.
The dollar extended its declines against major currencies ahead of the Fed meeting. The dollar index <.DXY>, tracking it against six major peers, fell 0.03 percent, with the euro
(Additional reporting by April Joyner and Sinéad Carew in New York; Editing by Leslie Adler and Phil Berlowitz)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.