Investors shift focus to the minutes of the Federal Reserve’s meeting for more cues on interest rates
Stocks climbed marginally on Tuesday to set fresh records as investors were optimistic in anticipation of Nvidia’s earnings report and the Fed minutes of last monetary policy. Market players are expecting the semiconductor giant to post strong financial results. Meanwhile, several Fed officials reinforced the stance that it would be best for the central bank to be patient before starting to cut interest rates. The S&P 500 rose 0.3%, the Dow Jones gained 0.2%, and the Nasdaq Composite added 0.2%.
Most Asian stocks were little changed on Wednesday as investors awaited the minutes of the Federal Reserve’s meeting for more cues on interest rates. Cooling optimism over China dented sentiment towards regional markets as well. Japan’s Nikkei 225 index was the worst performer in Asia, falling 0.86% after the data showed that Japan’s exports grew less than expected in April, while imports also disappointed. As a result, the country logged a bigger-than-expected trade deficit in the month. Elsewhere, Hong Kong’s Hang Seng index shed 0.12% after solid losses in the prior session.
In Europe, equities opened lower as the overall disk demand remained subdued. The pan-European Stoxx 600 was down 0.29% in early deals, with most sectors starting the day in the red. On the data front, U.K. inflation came in at 2.3% on an annual basis in April to exceed the forecast of 2.1%. Still, the result was much closer to the Bank of England’s target than the previous reading of 3.2%. Now, investors will be watching for minutes from the latest Federal Open Market Committee meeting.
Meanwhile, the US dollar looks directionless on Wednesday after some gains see earlier in the week. The USD index has settled slightly above the 104.50 zone that remains in the market focus. Despite the recent bounce from local lows around 104.00, the greenback lacks the directional impetus to stage a mode decisive and sustained recovery at this stage. However, should the upcoming Fed minutes deliver a hawkish tone, the dollar may see a solid short-term rally across the board, also deriving support from its safe-haven status.
