Stock market today: Global shares sink after Fed notes dent hopes of rate hikes ending
Global stocks have followed Wall Street lower after notes from a U.S. Federal Reserve meeting dented hopes that interest rate hikes are finished
BEIJING — Global stocks followed Wall Street lower Thursday after notes from a U.S. Federal Reserve meeting dented hopes interest rate hikes are finished.
London, Hong Kong, Paris and Seoul declined. Shanghai and Wall Street futures advanced. Oil prices rose.
Wall Street's benchmark S&P 500 lost 0.8% on Wednesday after minutes from the Fed's latest meeting suggested board members are unsure what to do after raising their key lending rate to a two-decade high. Traders had hoped the board would decide inflation was under control and last month's rate hike was the last.
Fed officials face a “tough balancing act” between “the risk of an inadvertent over-tightening of policy against the cost of an insufficient one,” said Tan Boon Heng of Mizuho Bank in a report.
In early trading, the FTSE 100 in London fell 0.3% to 7,332.01. The CAC 40 in Paris lost 0.4% to 7,233.00 and the DAX in Frankfurt retreated 0.3% to 15,738.25.
On Wall Street, futures for the S&P 500 and the Dow Jones Industrial Average were 0.1% higher.
On Wednesday, the Dow lost 0.5% and the Nasdaq composite dropped 1.1%.
In Asia, the Shanghai Composite Index gained 0.4% to 3,163.73, recovering from a loss in morning trading. The Nikkei 225 in Tokyo retreated 0.4% to 31,626.00 and the Hang Seng in Hong Kong was off less than 0.1% at 18,308.06.
The Kospi in Seoul shed 0.2% to 2,519.85 and Sydney's S&P-ASX 200 declined 0.7% to 7,146.00.
India's Sensex lost 0.6% to 65,139.93. Bangkok gained while New Zealand and other Southeast Asian markets retreated.
On Wall Street, the bond market is drawing money out of stocks as rising
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