TOKYO (AP) — Global shares were mostly lower Wednesday as investors looked cautiously ahead to a key policy update from the U.S. Federal Reserve later in the day. France's CAC 40 was little changed but inched down less than 0.1% to 5,510.52. Germany's DAX edged up 0.1% to 12,163.90, while Britain's FTSE 100 slipped 0.3% to 7,621.38. U.S. shares were set to drift higher with Dow futures up 0.2% to 27,226. S&P 500 futures were up nearly 0.2% to 3,017.20. Markets were spooked after President Donald Trump on Tuesday accused Beijing of trying to stall in trade talks through the 2020 presidential election in hopes of being able to negotiate with a more malleable Democrat. He said that if reelected, he would get "much tougher" with Beijing. "They'll pray that Trump loses," Trump told reporters. "And then they'll make a deal with a stiff, somebody that doesn't know what they're doing." Talks on the tariff war between the two largest economies resumed Tuesday and wrapped up earlier … [Read more...] about Global shares mixed as markets await US Fed rate decision
Us fed rate
TOKYO (AP) — Asian shares were mostly lower Wednesday as investors looked cautiously ahead to a key policy update from the U.S. Federal Reserve later in the day. Japan's benchmark Nikkei 225 fell 1.0% to 21,490.57 in early trading. Australia's S&P/ASX 200 lost 0.3% to 6,823.70. South Korea's Kospi dropped 1.1% to 2,015.92. Hong Kong's Hang Seng dropped 1.4% to 27,763.20, while the Shanghai Composite edged down 0.8% to 2,929.09. On Wall Street, a mixed batch of corporate earnings helped drag indexes slightly lower Tuesday, pulling the market farther from its recent record highs for the second straight day. The S&P 500 index fell 7.79 points, or 0.3%, to 3,013.18. Despite its two-day slide, the benchmark index remains within 0.4% of its all-time high set on Friday. The Dow Jones Industrial Average dropped 23.33 points, or 0.1%, to 27,198.02. The Nasdaq composite slid 19.71 points, or 0.2%, to 8,273.61. The Russell 2000 index rose 16.57 points, or 1.1%, to 1,585.60. The Fed … [Read more...] about Asian shares fall as markets look to US Fed rate decision
BANGKOK (AP) — Shares surged Wednesday in Asia following a rally on Wall Street spurred by signs the Federal Reserve is ready to cut interest rates to support the U.S. economy against risks from escalating trade wars. Japan's Nikkei 225 index jumped 1.8% to 20,773.86 while the Hang Seng in Hong Kong advanced 0.7% to 26,953.77. The Shanghai Composite index gained 0.6% to 2,880.18 and Australia's S&P ASX 200 climbed 0.6% to 6,367.20. South Korea's Kospi added 0.2% to 2,071.06. Shares also rose in Taiwan and Southeast Asia. Shares also were boosted by the Australian central bank's decision on Tuesday to trim its benchmark interest rate by a quarter of a percentage point in the first such cut in nearly three years. Australia's economy expanded at a 1.8% annual rate, 0.4% quarterly, in the first quarter, as the doldrums in trade and the housing market were offset by large inventories, the government reported Wednesday. But the biggest lift for regional markets came from Fed … [Read more...] about Asian shares jump on US Fed’s rate cut bandwagon
The US Federal Reserve surprised markets recently with a large and unexpected policy change. When the Federal Open Market Committee (FOMC) met in December 2018, it increased the Fed’s policy rate to 2.25%-2.5%, and signalled that it would raise the benchmark rate another three times, to 3%%-3.25%, before stopping. It also signalled that it would continue to unwind its balance sheet of Treasury bonds and mortgage-backed securities indefinitely, by up to $50bn (£38bn)per month. But just six weeks later, at the FOMC meeting in late January, the Fed indicated that it would pause its rate rises for the foreseeable future and suspend its balance-sheet unwinding sometime this year. Several factors drove the Fed’s volte-face. First and foremost, policymakers were rattled by the sharp tightening in financial conditions after the FOMC’s December meeting, which hastened a rout in global equity markets that had begun in October 2018. And these fears were exacerbated by an … [Read more...] about Why has the US Fed turned away from interest rate rises?
London (CNN Business)1. Apple's iPhone problem: Apple's iPhone revenue for the holiday quarter fell 15% from the same period a year ago, the company said after the markets closed Tuesday. CEO Tim Cook blamed sales decline on a mix of factors, including a slowdown in China, foreign exchange rates, a popular battery replacement program and reduced smartphone subsidies from carriers. The shrinking iPhone sales led to Apple's first holiday quarter revenue decline since 2000. And Luca Maestri, Apple's CFO, told analysts that the company expects some of the factors highlighted by Cook to continue "affecting iPhone performance" in the current quarter. Still, the earnings were slightly better than the company had warned investors to expect earlier this month, and Apple (AAPL) stock gained 5% in extended trading. More tech earnings are slated for Wednesday. Alibaba (BABA) is scheduled to report before the opening bell and investors will be watching for more clues on the health of the Chinese … [Read more...] about Tech earnings; Fed rate decision; China trade talks