United States stocks declined for a fourth straight session on Tuesday as investors awaited Wednesday’s Federal Reserve announcement and amid growing uncertainty about the UK’s future in the European Union.
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In Europe, France’s CAC 40 climbed 1.3 per cent to 4,185 and Germany’s DAX rose 1.0 per cent to 9,615.
Among other precious metals, spot silver fell 0.9 per cent to US$17.16 per ounce, spot platinum was down 0.8 per cent at US$982.21 per ounce and spot palladium was lower 0.2 per cent at US$541.25 per ounce. Investors don’t expect the US central bank to raise interest rates, but they will be looking for clues about what the Fed will do in July and thereafter.
The Federal Open Market Committee (FOMC) will release its policy statement at 2:00 p.m. ET after a two-day meeting.
Twitter rose 2.7 percent to $14.95 after Goldman Sachs added the micro-blogging site to its list of companies that could be bought in the next year. The Standard & Poor’s 500 index lost nine points, or 0.2 percent, to 2,072 and the Nasdaq composite fell nine points, or 0.2 percent, to 4,839. Australia’s S&P/ASX 200 lost 1.1 per cent to 5,147.10. Department stores also saw sales declines, sending Nordstrom Inc. and Kohl’s Corp. down at least 2.3%.
MSCI’s all-country world stock index was up 0.3 per cent, while the FTSEurofirst 300 finished up 0.9 per cent. It said China needs to make its market more accessible and closer to worldwide standards.
CHINA WEAKNESS: Factory output and investment in May were weaker than expected, hurt by slow foreign and domestic demand. The index has trimmed losses to 1.23% so far in June, after advancing 3.04% in May.
US stock index futures indicated a higher open Wednesday, following some hefty selling in global equity markets, as investors eyed an upcoming rate decision by the U.S. Polls show Britain’s vote could go either way, and investors are starting to worry about the consequences. “So you can understand why the government may have tapped the “National Team” on the shoulder today”, Nicholson said, referring to Chinese government entities likely behind the stock buying.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 10, 2016. The contract dropped 39 cents on Tuesday. Brent crude, used to price global oils, fell 86 cents to close at $48.97 a barrel in London.
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The US Dollar Index, a gauge reflecting the relative strength of the greenback against a basket of 6 other major currencies, was edging up 0.30% on the day at a level of 94.70, after reaching 94.74 earlier, or a lower-high test of June 13th’s high of 94.83. USA gold edged down 0.1 per cent to $1,287.30.
