Asia
Most markets in Asia-Pacific were higher on Wednesday after another strong performance on Wall Street, where new record highs for the Dow Jones and S&P 500 were set overnight. Markets were more focused on the upcoming Federal Reserve decision than President Trump’s threat to destroy North Korea.
Japan’s two main indices, Hong Kong’s Hang Seng and China’s CSI 300 all ended the day higher. Nevertheless, gains in the yen tempered rises in Japan’s Nikkei and Topix indices. The Bank of Japan will make a decision on interest rates before European markets open on Thursday. New Zealand’s second-quarter economic growth will also be revealed.
Europe
Exchanges in Europe were mixed with multiple country-specific factors in play. The FTSE 100 was a touch lower in midmorning trading amid gains for sterling against the dollar ahead of the Fed decision. DIY firm Kingfisher (KGF) was the biggest riser on the FTSE 100 as profits, despite falling in the most recent six months, beat forecasts.
UK retail sales for August were double forecasts, rising 2.8% year on year during the month, which proved a boost to sterling on Wednesday morning. Drinks maker Diageo (DGE) was the biggest faller on the index, despite re-affirming growth forecasts ahead of its annual meeting. Both Germany’s Dax and France’s Cac exchanges were moderately higher approaching midday Central European Time.
Spain’s Ibex fell amid more political disagreements over the Catalonia region’s plans for an independence referendum. Spanish police have raided offices in an attempt to halt the vote due in October, amid attempts by the central government to stop public money being used as campaign funds.
North America
The Federal Reserve is expected to keep interest rates on hold tonight but start to wind down its balance sheet. What will interest traders, especially currency investors, is any hint from the Fed chair Janet Yellen that there will be more than one interest rate hike by the end of the year.
Amid the Fed hype, there are more routine announcements on weekly crude oil inventories, which will be of interest after a recent push higher in crude oil prices. Existing home sales data will also be released for August. In the US, $32 billion market cap food giant General Mills (GIS) is one of the biggest firms to report.
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