US stocks closed lower overnight as investors digested another portion of earnings reports and the negotiations between Democrats and Republicans on another round of economic stimulus. The Dow Jones Industrial Average closed 0.8% lower, the Nasdaq Composite dropped 1.3%, and the S&P 500 dipped 0.6%. Shares of several major companies also declined. Amazon slipped 1.8%, Netflix declined by 1.4%, and Apple finished 1.6% lower.
Asian stocks were mixed on Wednesday amid the uncertainty ahead of the Fed’s decision outcome and after dismal company earnings. As such, the Japanese automaker Nissan Motor Co. reported a loss for the fiscal first quarter and revealed a gloomy outlook. After the report, the company’s stocks declined by over 10%. The Nikkei 225 gave up 1.14%, South Korea’s Kospi added 0.27%, Australia’s S&P/ASX 200 lost 0.23, and the Shanghai Composite in China jumped nearly 2%.
European markets struggled for gains today as investors waited for a Federal Reserve announcement due later. Fed Chairman Jerome Powell is expected to maintain the central bank’s dovish position. In individual stocks, shares of Barclays PLC fell over 2% after reporting pretax profit more than halved in the first half of 2020. Besides, the bank warned of a challenging second half.
Elsewhere, the dollar stays under the selling pressure nearly across the board. EURUSD recouped yesterday’s losses and looks set to challenge fresh two-year highs around 1.18. GBPUSD rallied to fresh March highs around 1.2975 and may target the 1.30 psychological barrier if the dollar remains on the defensive in the short term.
Meanwhile, bitcoin remains elevated on Wednesday, and it looks like BTCUSD is ready to extend the rally. However, as the cryptocurrency resumed the ascent after failed corrective attempts, the question is if the prices manage to confirm a break above the $10,000 handle in the near term. there is a risk of some profit-taking around the current levels that could prevent bitcoin from climbing to fresh 2020 highs in the days to come.
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