SEOUL, South Korea (AP) — Global stock markets meandered Thursday ahead of the Federal Reserve’s announcement on whether it would raise U.S. interest rates for the first time in nearly a decade.
KEEPING SCORE: In Europe, Britain’s FTSE 100 down 0.3 percent at 6,213 while France’s CAC 40 rose 0.3 percent to 4,658. Germany’s DAX was 0.3 percent higher at 10,258. U.S. stocks were poised for a subdued opening with Dow futures and the broader S&P 500 futures down 0.2 percent.
TO HIKE OR NOT: Two months ago, it seemed almost certain that the Fed was going to raise rates in September. Now, after the summer turmoil in financial markets and concerns about China’s economy, there are more investors who believe the Fed will wait until December. The Fed started its two-day policy meeting Wednesday and will announce its decision Thursday afternoon. Interest rates have been near zero since 2008 in response to the financial crisis and Great Recession. The Fed’s low interest rate policy was designed to encourage lending, but it also helped drive a seven-year bull market in stocks.
ANALYST QUOTE: “To hike or to hold, that is the question that vexes us today and has done so for quite a few months now,” said Michael Hewson, chief market analyst at CMC Markets.
CURRENCIES: The dollar could be the big mover after the Fed announcement and the subsequent press briefing from Fed Chair Janet Yellen. In the run-up to the decision, the dollar was mixed, with the euro up 0.3 percent at $1.1318. The dollar, meanwhile, was 0.3 percent higher at 120.93 yen.
ASIA’S DAY: Tokyo’s Nikkei 225 advanced 1.4 percent to 18,432.27 and South Korea’s Kospi closed up 0.1 percent at 1,976.49. Australia’s S&P/ASX 200 gained 0.9 percent to 5,146.80. Markets in Southeast Asia were also higher but China’s Shanghai Composite Index closed down 2.1 percent at 3,086.06 after volatile trading. Hong Kong’s Hang Seng index declined 0.5 percent to 21,854.63.
ENERGY: U.S. benchmark crude edged down 54 cents to $46.61 per barrel on electronic trading in New York Mercantile Exchange. Brent crude, a benchmark for international oils, fell 76 cents to $48.99 per barrel in London after a 4-percent jump in the previous session.
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