Major stock market indexes rose on Wednesday as the U.S. dollar picked up on news of an upcoming meeting between top U.S. and Chinese trade officials.
U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China’s Vice Premier He Lifeng in Switzerland this weekend, marking the first step toward easing trade tensions between the world’s two largest economies.
News of the meeting announced by Washington yesterday, and later confirmed by Beijing, sent U.S. equity index futures sharply higher, while stock markets in China and Hong Kong also rose as Asian trading began on Wednesday.
U.S. shares dip as Asian stocks gain
In the U.S. stock market, the Dow Jones Industrial Average was down 0.95 percent, the S&P 500 index fell 0.77 percent and the Nasdaq Composite dipped 0.87 percent
In Asia, Hong Kong’s Hang Seng was up 0.47 percent and China’s CSI 300 Index gained 0.38 percent. Japan’s Nikkei remained largely flat. South Korea’s KOSPI Index rose 0.45 percent to 2,571.25, while MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.25 percent.
The Taiwan Weighted Index also rose 0.12 percent while the Shanghai Composite Index gained 0.38 percent. The broader Topix index rose 0.48 percent to 2,700.72.
In the Indian stock market, shares were largely flat on Wednesday as geopolitical tensions rose. The benchmark S&P BSE Sensex was marginally down while the NSE Nifty index rose a slight 0.0045 percent.
Read: Saudi Arabia leads MENA IPO market as proceeds reach $2.4 billion with 106 percent YoY growth
Fed to hold rates steady
The U.S. Federal Reserve is meeting to decide on interest rates later in the day, with markets expecting the central bank to keep rates steady after fresh data pointed to a solid U.S. labor market last week. Markets mostly expect the Fed to keep rates steady on Wednesday, with only a 33 percent chance of a cut in June, down from 64 percent a month ago.
The dollar took a hit last month when U.S. President Donald Trump threatened to fire Fed Chair Jerome Powell. However, he has since backed down on his threats. As the U.S. stock market dipped, the U.S. dollar index was 0.14 percent higher at 99.37.
China also announced a rate cut, more cash for the banking system, and expanded a channel for insurance money to flow into stocks. However, the market’s reaction was muted as investors await fiscal stimulus measures and updates on U.S-China trade talks.
In commodities, spot gold was trading 0.70 percent lower at $3,391.82 per ounce while U.S. gold futures declined 0.71 percent to $3,391.82. Brent crude futures, down about 16 percent since the tariff announcements, gained over 1 percent to $62.84 a barrel today. WTI was also up 1.29 percent to $59.85.
