Most officials thought it was appropriate to begin reducing the pace of asset purchases this year
Wall Street stocks edged lower overnight after minutes of the Fed’s July meeting indicated that most officials thought it was appropriate to begin reducing the pace of asset purchases this year. The benchmark S&P 500 shed 1.07% in its biggest decline since mid-July. The Dow Jones Industrial Average fell 1.08%, and the Nasdaq Composite lost 0.89%.
Asian markets retreated on Thursday amid the uncertainty after the Fed made no firm decision on when to unwind their support measures, with worries over surging coronavirus infections persisting. As such, Tokyo’s Nikkei 225 slipped 1.10%, the Kospi in South Korea lost 1.93% and the Shanghai Composite Index gave up 0.57%. Hong Kong’s Hang Seng was down 2.13% and Sydney’s S&P/ASX 200 declined 0.50%.
In Europe, stocks opened lower today, with the pan-European Stoxx 600 trading 2% lower in mid-morning deals. U.S. stock market futures were indicating a lower open on Thursday. In individual stocks, Gn Store Nord fell almost 10% after reporting its second-quarter results.
Meanwhile, the dollar rallies across the board as USD bulls are cheering the Fed’s hawkish message. Against this backdrop, EURUSD failed to hold above the 1.1700 figure to register early-November lows around 1.1665 before bouncing slightly. If the pressure persists, the pair could target the 1.1630 area next.
In other markets, oil prices dipped to three-month lows below the $66 figure, losing ground for the sixth day in a row on Thursday. The futures are plunging along with other risky assets after the FOMC meeting minutes while a stronger dollar is adding to the selling pressure. A daily close below $66 would send Brent crude to fresh lows around $65.