Global Markets: Stocks edge lower with Fed decision on tap; oil slips
By Saqib Iqbal Ahmed NEW YORK (Reuters) - Stocks around the world edged lower on Wednesday and the U.S. dollar crept up as investors waited for the U.S.
By Saqib Iqbal Ahmed
NEW YORK (Reuters) - Stocks around the world edged lower on Wednesday and the U.S. dollar crept up as investors waited for the U.S. Federal Reserve's decision on interest rates later in the day.
Oil prices cooled as Saudi Arabia's pledge to quickly restore production eased worries over supply.
The MSCI world equity index, which tracks shares in 47 countries, fell 0.16%.
Deep disagreements within the Federal Reserve over the economic outlook and how the U.S. central bank should respond to it is not expected to stop policymakers from cutting interest rates as a two-day meeting concludes on Wednesday.
While a 25-basis point rate cut by the Fed is widely expected, investors are looking to its statement after the meeting and economic projections for clues regarding future monetary policy moves.
Investors expect Chairman Jerome Powell to explain the Fed's position at a news briefing after the rate decision.
"The interesting aspect for me will be how Chair Powell characterizes recent strength in the data without sounding hawkish at the same time, because they do want to keep the door open for more cuts," said Subadra Rajappa, head of U.S. rates strategy at Societe Generale in New York.
On Wall Street, stocks edged lower, hurt by economic bellwether FedEx Corp's warning on full-year profit.
The Dow Jones Industrial Average fell 67.61 points, or 0.25%, to 27,043.19, the S&P 500 lost 8.22 points, or 0.27%, to 2,997.48 and the Nasdaq Composite dropped 25.87 points, or 0.32%, to 8,160.15.
European shares steadied after early declines, as technology shares helped offset losses in luxury goods. The pan-European STOXX 600 index was 0.07% higher.
Oil prices retreated, extending the previous day's declines after Saudi Arabia said it would quickly restore full production following weekend attacks on its facilities.
Tension in the Middle East remained elevated, however, after Saudi Arabia said it would provide evidence on Wednesday linking Iran to the attacks. The United States had already said it believed the attacks against the world's top oil exporter originated in southwestern Iran.
U.S. crude fell 1.15% to $58.66 per barrel and Brent was last at $64.14, down 0.64% on the day.
In FX markets, the dollar rose to trade near a seven-week high against the yen.
Meanwhile, U.S. Treasury yields fell, with Benchmark 10-year notes were last up 16/32 in price to yield 1.7578%, down from 1.814% on Tuesday.
Possibly further complicating the Fed's discussions, short-term U.S. interest rates shot up this week, with overnight repo rates rising to 7%, due largely to seasonal factors such as huge payments for taxes and bond supply.
That prompted the New York Fed to conduct its first repo operation in more than a decade to inject funds to stressed money markets.
The New York Federal Reserve said late Tuesday it would conduct a repurchase agreement operation early on Wednesday "in order to help maintain the federal funds rate within the target range of" 2.00% to 2.25%.
Gold consolidated around $1,500 on Wednesday, keeping to a $3 range ahead of the Fed decision.
(Reporting by Saqib Iqbal Ahmed; Additional reporting Karen Brettell; Editing by Bernadette Baum)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Douglas Busvine BRUSSELS/BERLIN (Reuters) -Intel wants 8 billion euros ($9.7 billion) in public subsidies towards building a semiconductor factory in Europe, its CEO was cited as saying on Friday, as the region seeks to reduce its reliance on imports amid a shortage of supplies. The pitch is the first time Pat Gelsinger has publicly put a figure on how much state aid he would want, as Intel pursues a multibillion-dollar drive to take on Asian rivals in contract manufacturing. "What we're asking from both the U.S
(Reuters) -Ximalaya, backed by China's Tencent Holdings, filed for an initial public offering (IPO) in the United States on Friday, cashing in on growing demand as more people tune in to podcasts while staying at home during the pandemic. China's Qiniu Ltd, a cloud-based platform-as-a-service provider backed by Alibaba Group Holding Ltd, also filed paperwork for a U.S. IPO
By Greg Roumeliotis (Reuters) - Donerail Group, an investment firm led by former activist hedge fund Starboard Value LP executive Will Wyatt, has amassed a stake in Turtle Beach Corp and is pushing the maker of gaming headsets to explore a sale, people familiar with the matter said on Friday. The move represents a bet that Turtle Beach could attract acquisition interest from peers such as Corsair Gaming Inc and GN Store Nord A/S, as the video game market continues to benefit from people looking for entertainment options at home during the COVID-19 pandemic