Universal Music Group shares jumped more than 35% after the listing
Wall Street stocks plunged overnight, but bounced off session lows by the close of trade, as investors positioned ahead of a two-day meeting of Federal Reserve policymakers that concludes on Wednesday. The S&P 500, which is on track for its first monthly decline since January, shed 1.70%. The Dow Jones and the Nasdaq Composite gave up 1.78% and 2.19%, respectively.
Asian equities were mixed on Tuesday, with markets closed in Shanghai and South Korea. In Hong Kong, the Hang Seng gained 0.51% following the initial losses. The Nikkei 225 dropped over 2%, while Australia’s S&P ASX 200 added 0.35%. it looks like the broader market began to stabilize following yesterday’s sell-off triggered by concerns over the Chinese property giant Evergrande. The troubled company’s stocks finished 0.44% lower today after the initial plunge by 7%.
In Europe, stocks opened higher on Tuesday despite negative sentiment surrounding China Evergrande. In part, a strong debut from Universal Music Group helped lift regional stocks. The company’s shares jumped more than 35% above its reference price on its first day of trading after the listing. The main focus now shifts towards the Federal Reserve.
In currencies, dollar demand has eased following yesterday’s rally to fresh four-month highs. The USD index struggles for direction above the 93.00 figure during the European hours after hitting fresh tops near 93.50 at the beginning of the week. In the near term, the greenback is expected to trade within a narrow range ahead of the FOMC gathering.
Elsewhere, gold prices have settled above the $1,750 region on Tuesday. The precious metal has been struggling at $1,767 for the third session in a row as a strong dollar caps the upside potential in the gold market. In the near term, the bullion could stay afloat but bearish risks continue to persist ahead of the key event of the week.