The U.S. central bank is expected to confirm that it will maintain its easy monetary policy
Wall Street stocks closed mostly higher overnight, rising to a new record as investors looked ahead to the Federal Reserve meeting that starts today. Market players expect the central bank to leave rates unchanged while Powell’s tone could bring some volatility to the markets. As such, S&P 500 index rose 0.18%, Nasdaq gained 0.87%, and the Dow slipped 0.18%.
Asian stocks were little changed on Tuesday, struggling for direction ahead of the Federal Reserve’s policy decision despite the U.S. central bank is expected to confirm that it will maintain its easy monetary policy. Meanwhile, US benchmark 10-year yields rose slightly to 1.573%. The Nikkei 225 in Tokyo lost 0.46% and the Hang Seng in Hong Kong retreated 0.04%. The Shanghai Composite Index gained just 0.04%, the Kospi in Seoul declined 0.07% while the S&P/ASX 200 in Australia fell 0.17%.
In Europe, equities are trading largely unchanged on Tuesday, with ranges being tight as the focus has been on the European corporate earnings season and the upcoming Fed meeting. The pan-European Stoxx 600 slid 0.1% below the flat-line in early trading. U.S. stock futures held steady in early premarket trading on Tuesday.
Meanwhile, the dollar advances further on Tuesday amid rising Treasury yields and worsening investor sentiment. As such, EURUSD extends its downside correction from two-month highs above 1.2100 and was last seen just above the 100-DMA. A break below this moving average, which arrives at 1.2050 today, would pave the way towards the 1.2000 figure.
In other markets, Brent crude failed to challenge the $66 figure once again and retreated from intraday peaks in recent trading while holding above the 20-DMA. In part, the prices struggle to regain upside momentum amid a recovery in the safe-haven dollar demand. Later today, the API weekly report could affect short-term dynamics in the market.
