Global markets update: US stocks end mixed after Fed signals more rate hikes

The Dow Jones Industrial Average dropped 232.79 points, or 0.7%, to 33,979.33. The broad-based S&P 500 rose 3.58% or 0.1% at 4,372.59, while the tech-rich Nasdaq Composite Index climbed 53.16 points or 0.4% to 13,626.48.

The MSCI World index rose 0.2%

In Treasuries, benchmark 10-year notes were down 4.5 basis points to 3.794%, from 3.839% late on Tuesday. The 30-year bond was last down 6.4 basis points to yield 3.8768%, from 3.941%. The 2-year note was last was unchanged to yield 4.6964%, from 4.696%.

In currencies, the dollar index fell 0.29%, with the euro up 0.38% to $1.0832. The Japanese yen strengthened 0.20% versus the greenback at 139.94 per dollar, while Sterling was last trading at $1.2661, up 0.39% on the day.

In energy, crude oil futures added to losses after the Fed’s news. The commodity had given up earlier gains as traders weighed an unexpected, large build in U.S. crude oil against bullish demand growth forecasts.

In cryptocurrencies,  Bitcoin was little changed at $25,869.47, while Ether fell 0.6% to $1,728.33.

The yield on 10-year Treasuries declined one basis point to 3.80%

Brent crude futures settled $1.09, or 1.5%, lower at $73.20 a barrel, while US West Texas Intermediate (WTI) crude closed $1.15, or 1.7%, lower at $68.27.

Gold prices pared gains after the Fed kept interest rates unchanged, as widely expected, but pointed to more rate hikes down the year.

Spot gold was up 0.3% at $1,949.89 per ounce  US gold futures settled 0.5% up at $1,968.9.

Canada

Canada’s stock index edged higher on Wednesday as gains for technology shares offset a decline in the energy sector, while investors assessed the Fed’s move to pause its interest rate hiking campaign.

Toronto Stock Exchange’s S&P/TSX composite index ended up 24.69 points, or 0.1%, at 20,015.09

The TSX has gained 3.6% year-to-date versus a near 14% rise in Wall Street’s S&P 500.

Europe

European shares edged higher on Wednesday, supported by banks and miners.

The pan-European STOXX 600 index closed 0.4% higher.

Britain’s FTSE 100 rose 0.1%, its third straight session of gains. Germany’s Frankfurt DAX up 0.49% at 16, 310.79. France’s CAC 40 added 0.52% at 7,328.53.

The European Central Bank will hold its policy meeting on Thursday, where it is expected to hike rates by another 25 basis points to tame inflation.

Asia

In Asia, Hong Kong’s Hang Seng Index was down 0.58% at 19,408.42. China’s Shanghai Composite was 0.14% down at 3,228.99

Japan’s Nikkei 225 rose 1.47% at 33,502.42.

Australia’s S&P/ASX 200 index finished 0.32% higher at 7,161.70. New Zealand’s benchmark S&P/NZX 50 index advanced 0.22% to 11,678.62.

(With inputes from agencies )

Updated: 15 Jun 2023, 03:26 AM IST