Global markets update: US stocks slip after Fed minutes show officials split over rate hike

The S&P 500 fell 33.62 points, or 0.76%, at 4,404.24 points. The Dow Jones Industrial Average shed 179.86 points, or 0.51%, at 34,766.53. The Nasdaq Composite lost 156.59 points, or 1.15%, at 13,474.45.

The support to raise interest rates by a quarter point wasn’t unanimous among the broader panel of about 18 officials. The Federal Open Market Committee’s (FOMC) 11 members unanimously voted to raise interest rates by a quarter point to a 22-year high, two favored leaving rates unchanged.

The minutes showed that the Fed has likely not finished raising interest rates.

Shares of Tesla fell 3.2%. 

Facebook-owner Meta Platforms, dropped 2.5% and Amazon lost 1.9%.

Intel stock slid 3.6% after it and Tower Semiconductor called off Intel’s $5.4 billion buyout of the Israeli chip maker.

A report on Wednesday showed that US industrial production increased in July more than economists’ forecast.

The yield on the 10-year treasury rose to 4.26% from 4.22% late Tuesday.

Currencies

The US dollar gained at 146.24 Japanese yen from 145.68. It ticked higher against the euro and rose at 17.12 Mexican pesos from 17.10.

Europe

European markets closed mixed on Wednesday.

The pan-European STOXX 600 closed 0.1% lower.

Britain’s FTSE 100 fell 0.4% at 7,356.88. Germany’s DAX rose 0.1% at 15,789.45. France’s CAC 40 lost 0.1% at 7,260.25.

The European banks index lost 0.7%.

Luxury firms LVMH and Kering fell 0.2% and 0.4%, respectively. 

A report showed that euro zone’s GDP in second quarter rose by 0.3% quarter-on-quarter.

Another report showed that industrial production in June increased by 0.5% month-on-month.

Asia

Asian stock markets closed in the red on Wednesday on deteriorating economic conditions in China.

Stock indices in Japan, Hong Kong, South Korea and Australia all fell more than 1%.

Hong Kong’s Hang Seng index slipped 1.4% at 18,329.30. China’s Shanghai Composite lost 0.8% at 3,150.13.

Japan’s Nikkei 225 edged down 1.5% at 31,766.82.

Australia’s S&P/ASX 200 index fell 1.5% at 7195.20 points. New Zealand’s benchmark S&P/NZX 50 index lost 0.488% at 11,763.11. 

Energy prices

Brent crude for October delivery fell $1.44 at $83.45 a barrel on Wednesday. The US crude oil benchmark for September delivery fell $1.61 at $79.38 a barrel.

Natural gas for September delivery lost 7 cents to $2.59 per 1,000 cubic feet.

Bullion

Gold for December delivery fell $6.90 at $1,938.30 an ounce. Silver for September delivery lost 12 cents at $22.54 an ounce.

Updated: 17 Aug 2023, 02:17 AM IST