Equities on hold as traders await Fed decision
Stocks paused their gains amid a flurry of corporate news and earnings with traders adopting a cautious stance before the Federal Reserve’s policy decision on Wednesday.
Europe’s benchmark Stoxx 600 posted small moves as car makers Volkswagen AG, Mercedes-Benz Group AG and Stellantis NV retreated, offsetting better-than-expected economic data from France and Spain. HSBC Holdings Plc climbed more than 2% after solid earnings and the surprise departure of Group Chief Executive Officer Noel Quinn. Big retail names are also due to report, with earnings from Amazon.com Inc., McDonald’s Corp and Coca-Cola Co.
Early results from the US reporting season suggest that more than 80% of companies are beating expectations, helping offset fears rates will stay higher for longer. Fed Chair Jerome Powell is unlikely to ease those concerns on Wednesday amid hot inflation data and signs of strength in the US economy, according to Bloomberg Economics.
The Bloomberg Dollar Spot Index rose 0.3% while 10-year Treasury yields were steady at 4.62%. S&P 500 futures were little changed.
Corporate Highlights:
In Asia, Samsung Electronics Co. rose as much as 2.4% in Seoul trading after its semiconductor business returned to profitability for the first time since 2022. Equity gauges climbed in Japan and Hong Kong, and Chinese onshore stocks fluctuated following data showing an expansion in the nation’s factory activity for a second month.
The Japanese yen traded 0.4% weaker against the dollar at 156.92. On Monday, the currency surged back from its weakest level against the greenback in 34 years amid suspicion the government intervened.
Elsewhere, oil held its biggest drop in almost two weeks as discussions on a possible cease-fire in the
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