Global markets update: US stocks dip as investors brace for Fed interest rate decision

It is widely anticipated that the US central bank will leave key interest rates unchanged. 

The S&P 500 lost 9.84 points, or 0.22%, at 4,443.69 points. The Nasdaq Composite fell 32.05 points, or 0.23%, at 13,677.80. The Dow Jones Industrial Average dropped 106.46 points, or 0.31%, at 34,517.84. 

Shares of Walt Disney slid 3.6% after announcing that it would nearly double its capital expenditure for its parks business over the next 10 years.

Auto parts retailer AutoZone slipped 1.9% despite reporting stronger profit for the latest quarter.

The yield on the 10-year treasury rose at 4.36% from 4.30% late Monday. The 2-year treasury yield gained at 5.11% from 5.05%.

Currencies

The US dollar rose at 147.86 Japanese yen from 147.75. It fell at $1.0677 from $1.0679 against the euro.

Europe

European shares were little changed on Tuesday.

The pan-European STOXX 600 index held steady at 456.52 points. 

Britain’s FTSE 100 edged up less than 0.1% at 7,660.20. Germany’s DAX fell 0.4% at 15,664.48. France’s CAC 40 added less than 0.1% at 7,282.12. 

A report showed that euro zone’s consumer inflation in August was slightly lower than initially estimated, but it remained above the European Central Bank’s target.

Energy sector index rose 1% as crude prices jumped more than 1%. 

Real estate stocks gained 1%.

Technology shares fell 0.6%.

Retailers dipped 1.6%.

Asia

In Asia, the stock markets moved in different directions on Tuesday as oil prices rise.

Hong Kong’s Hang Seng Index rose 0.4% at 17,997.17. China’s Shanghai Composite ended flat at 3,124.96. 

Japan’s Nikkei 225 edged down 0.9% at 33,242.59.

Australia’s S&P/ASX 200 index fell 0.5% at 7,196.60. New Zealand’s benchmark S&P/NZX 50 index lost 0.5% at 11,344.52.

Energy prices 

The US crude oil benchmark for October delivery fell 28 cents at $91.20 a barrel on Tuesday. Brent crude for November delivery lost 9 cents at $94.34 a barrel. 

Natural gas for October delivery added 12 cents at $2.85 per 1,000 cubic feet.

Bullion 

Gold for December delivery rose 30 cents at $1,953.70 an ounce. Silver for December delivery fell 4 cents at $23.46 an ounce.

Updated: 20 Sep 2023, 02:04 AM IST