With No Surprises From Fed, Market Barely Budges
United States markets edged lower in early trading on Wednesday, a day after closing at record highs. Investors looked ahead to the publication of minutes of the Federal Reserve's last meeting.
KEEPING SCORE The Dow Jones industrial average was down 0.09 percent and the Standard & Poor's 500-stock index was down 0.19 percent. The Nasdaq composite index dropped 0.37 percent.
EUROPE'S DAY In Germany, the DAX rose 0.7 percent and in France, the CAC 40 was up 0.6 percent. The FTSE 100 was down 0.1 percent in Britain.
FED WATCH Traders are turning their focus to the Fed, which will publish minutes to its last policy meeting later Wednesday. Investors will look for insight on when the central bank might start raising interest rates as the labor market continues to improve but the global economic backdrop remains a concern. The minutes 'may offer insight into the balance of opinions among Fed policy makers,' said Michael Carey, an analyst at Crédit Agricole CIB.
JAPAN ECONOMY Japan's economic outlook also remains a major point of interest after the country this week said it slid back into recession after a sales tax increase was imposed in April, even as the government and Bank of Japan carry out ambitious stimulus efforts. After shelving a tax increase planned for next year, Prime Minister Shinzo Abe this week called a snap election for December to renew the mandate for his all-or-nothing 'Abenomics' effort to end Japan's two decades of economic stagnation.
THE QUOTE 'There is growing condemnation of Abenomics and whether its stated goals are achievable and whether the policy settings are correct,' said Evan Lucas, a market strategist at IG in Melbourne, Australia. 'I remain convinced that whatever the outcome of the election, the B.O.J. will continue and even increase its stimulus program as will any Japanese government and, in turn, that will push equities higher.'
ASIA'S DAY The Nikkei 225 declined 0.3 percent in Japan, while in Hong Kong, the Hang Seng fell 0.7 percent. The Shanghai Composite Index sank 0.2 percent in China. In Australia, the S.&P./ASX 200 lost 0.6 percent.
ENERGY Benchmark United States crude fell 13 cents to $74.51 a barrel on the New York Mercantile Exchange. The contract fell $1.03 to close at $74.61 on Tuesday.
CURRENCIES AND BONDS The dollar rose to 117.63 yen from 117.12 yen late Tuesday. The euro rose to $1.2531 from $1.2523. Bond prices fell. The yield on the 10-year Treasury note rose to 2.35 percent.
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