Global Markets Set Up Sober Pre-Bell Outlook On Wall Street; Europe Up, Asia Patchy; All Eyes On Fed
Traders marked gains on European bourses late Monday, while pre-bell Tuesday Asian markets turned in cautious and patchy results. In Asia, traders mulled the outlook from the Federal Reserve, and soft oils. The U.S. central bank is expected to announce a quarter-point rise in the federal funds at its two-day policy meeting beginning Tuesday, but there is uncertainty as to whether Chairwoman Janet Yellen will tip her hand to rate hikes in coming seasons.
Continuing softness in the global oil patch has unsettled some traders on signs of trouble in high-yield bond issues tied to crude.
Stock futures pre-bell hinted at an up-day on Wall Street, as oil recovered in early trading. The S&P 500 futures (ESZ5) was up 0.78%, while Dow Jones Industrial Average futures (YMZ5), was up 0.81%.
The U.S. Bureau of Labor Statistics is slated to release the closely-followed CPI index Tuesday, but few expect the inflation gauge to change the Fed's decision on a rate hike.
In Europe, Thomson Reuters Equity UK Index closed up 1.49%; for Germany up 1.98%; and France up 2.07%. The FTSE 100 Index closed up 1.58%. The Pan-European FTSEurofirst 300 closed up 1.77%.
Japan's Nikkei 225 stock index fell 1.68% to 18,565.90, while the Hong Kong's Hang Seng lost 0.17% to 21,274.37. on the mainland, Shanghai Stock Exchange Composite Index Composite fell 0.29% to 3,510.35. South Korea's Kospi, however, was up 0.3% at 1,932.97. The Thai Set gained 2.60% to 1,300.51 on strength in telecom shares. India's Sensex closed up 0.68%.
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