Markets Mixed As Traders Eye US Data, Looming Fed Meeting

Stock markets were mixed Thursday after a tepid day on Wall Street, with traders looking forward to a string of US data that could help sway Federal Reserve officials ahead of their policy meeting next week

Hong Kong, (UrduPoint / Pakistan Point News - 14th Mar, 2024) Stock markets were mixed Thursday after a tepid day on Wall Street, with traders looking forward to a string of US data that could help sway Federal Reserve officials ahead of their policy meeting next week.

While a hot consumer price index reading earlier this week did not rock optimism that interest rates will come down this year, analysts warned that could be tested if the producer price index (PPI) comes in above forecast later in the day.

However, they also said equities could be range-bound until the Fed's gathering is over.

Decision-makers are widely expected to stand pat again but their post-meeting statement and fresh outlook for rates will be pored over, with dealers seeing three reductions this year -- in line with the Fed's current forecasts.

"The PPI data typically doesn't spark significant market movements," said Stephen Innes at SPI Asset Management.

"Still, given traders' ongoing concerns about pipeline inflation, another hotter-than-expected print could lead to minor turbulence."

Thursday will also see Washington release retail sales, jobless claims and consumer sentiment figures.

A pull-back in tech giants including Nvidia, Apple and Tesla helped pull down the S&P 500 and Nasdaq in New York, though the Dow ended slightly higher.

That came after Paris and Frankfurt set new records earlier in the day.

Asian traders also moved cautiously.

Hong Kong retreated for a second day after a recent rally, while Shanghai, Sydney, Jakarta and Wellington were also lower.

Tokyo rose on a weaker yen, though traders are awaiting a Bank of Japan meeting next week as speculation swirls that policymakers may begin moving away from an ultra-loose monetary policy.

Singapore, Seoul, Taipei, Mumbai, Manila and Bangkok also rose.

London dropped at the open while Paris and Frankfurt edged up.

City Index's Matt Simpson said: "Markets have a close eye on US producer price data later today, as it could be used to confirm or deny this week's hotter (consumer prices) report.

"That seems to be suppressing volatility more than usual in today's Asian session, not helped by the lack (of) economic data this session."

Investors are keeping tabs on China-US tensions after the House of Representatives overwhelmingly approved a bill that would force TikTok's Chinese ByteDance owner to divest from the company or see the platform be banned in the United States.

China warned the decision will "inevitably come back to bite the United States".

Bitcoin was hovering just below $73,000 after hitting a new record high of $73,664 Wednesday.

Oil ticked higher, having rallied more than two percent in reaction to falling US stockpiles and news that Ukraine had hit Russian refineries.

- Key figures around 0810 GMT -

Tokyo - Nikkei 225: UP 0.3 percent at 38,807.38 (close)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 16,961.66 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,038.23 (close)

London - FTSE 100: DOWN 0.1 percent at 7,763.27

Dollar/yen: UP at 147.86 yen from 147.78 yen on Wednesday

Euro/dollar: DOWN at $1.0937 from $1.0952

Pound/dollar: UP $1.2805 from $1.2799

Euro/pound: DOWN at 85.41 pence from 85.54 pence

West Texas Intermediate: UP 0.4 percent at $80.01 per barrel

Brent North Sea Crude: UP 0.3 percent at $84.30 per barrel

New York - Dow: UP 0.1 percent at 39,043.32 points (close)