Stock market today: Asian shares are mixed as Wall Street gears up for an interest rate cut
Stocks in Asia were mixed on Tuesday as global markets braced for Federal Reserve measures. most anticipated meeting in years.
Tokyo’s Nikkei index fell 1% to 36,203.22 and Hong Kong’s Hang Seng rose 1.3% to 17,654.79.
Markets in China and South Korea were closed.
Australia’s S&P/ASX 200 rose 0.2% to 8,140.90.
Traders are anxiously awaiting the Fed’s decision on interest rates on Wednesday. The Fed is expected to cut its key interest rate for the first time in more than four years after keeping rates high to curb inflation. The key question is how much relief the Fed will provide to the economy.
“The caveat is that markets steeped in rich policy expectations are ripe for volatility,” Mizuho Bank said in a commentary. “Therefore, it may be best to be prepared for (policy) curveballs that could potentially lead to market re-rating.”
US retail sales and industrial production figures are due later in the day.
On Monday, the Dow rose 228 points, or 0.6%, surpassing its previous all-time high set a few weeks ago. The Dow closed at 41,622.08.
The S&The P 500 index, which is much more comprehensive and widely followed on Wall Street, rose 0.1%, within 0.6% of its own July record. The index closed at 5,633.09.
The Nasdaq Composite fell 0.5% to 17,592.13 as big technology companies and other market stars gave up some of the big gains of recent years.
Most stocks rose, with Oracle’s 5.1% gain helping to lead the market. The software company posted a strong run That started last week with a better-than-expected earnings report.
Alcoa rose 6.1% after it said it would sell its ownership stake in a joint venture in Saudi Arabia to Saudi Arabian Mining Co. for $950 million in stock and $150 million in cash. But declines for some influential Big Tech stocks kept the indexes in check. Apple fell 2.8% and Nvidia lost 1.9%. They are among the most influential stocks on the market because they are among the largest by market value.
Carl Icahn’s Icahn Enterprises rose 14.5% after a U.S. judge dismissed a proposed class-action lawsuit against the company. The lawsuit was based on allegations from a research firm that probes financial irregularities at companies and tries to profit when stock prices fall.
Fertilizer maker Mosaic fell 3.6% after the company said electrical equipment outages at mines and Hurricane Francine would cut potash and phosphate production in the current quarter.
Traders are shifting their bets on a larger-than-usual Fed rate cut of half a percentage point, according to data from CME Group. The difference between a half-point and a quarter-point cut may sound academic, but it could have far-reaching implications. Lower rates ease pressure on the economy, but they could also fuel inflation.
Inflation has fallen significantly from the peak of two summers ago, and the Fed has said it can now focus on supporting the slowing labor market And economySome critics say it may be too late, increasing the risk of a potential recession.
In other trading, the dollar fell to 140.57 Japanese yen from 140.61 yen. The yen has risen on expectations that the Bank of Japan will continue raising interest rates after keeping them at zero for years, although it is expected to leave the rate unchanged at its policy meeting this week.
“The Bank of Japan’s upcoming policy meeting is expected to reaffirm its commitment to gradual rate hikes, which could further strengthen the yen soon,” Luca Santos, currency analyst at ACY Securities, said in a commentary.
The euro fell from $1.1135 to $1.1132.
U.S. benchmark crude rose 55 cents to $70.64 a barrel. Brent crude, the international standard, rose 37 cents to $73.12 a barrel.