Global Markets Mixed Ahead of Federal Reserve Meeting

By Dow Jones Newswires Staff

Stock markets were mixed early on Tuesday ahead of the Federal Reserve's two-day meeting, with markets pricing in a 97% chance of a 25 basis-point rate cut on Wednesday and 3% odds of a 50 basis-point reduction, according to LSEG data. Markets will closely watch Fed Chair Jerome Powell's comments for insights into the inflation outlook, labor market weakness and tariff-related risks. Separately, a U.S. appeals court rejected an emergency Trump administration request to remove Fed Governor Lisa Cook ahead of the meeting.

On Monday, the S&P and Nasdaq closed at fresh record highs driven by a continuing surge in tech stocks and after the U.S. and China reached a framework deal over TikTok, signalling a potential cooling of trade tensions.

Gold prices hit fresh record highs early Tuesday in Europe as Fed rate-cut expectations continued to pressure the dollar.

--U.S. stock futures were pretty much flat, while Asian shares closed mostly higher. South Korea and Japan continued to benefit from gains in chip and technology-related stocks, with South Korea's Kospi closing up 1.2%, a fresh record, as heavyweight SK Hynix ended the day up 5.1%. Japan's Nikkei closed up 0.3%. Hong Kong's Hang Seng gained 0.2% while China's benchmark Shanghai Composite was flat.

--In Europe, the pan-European Stoxx Europe 600 fell 0.2% in morning trading amid a muted start to trading across major national markets. Mining-sector stocks outperformed amid the rising optimism on a trade truce between the U.S. and China and gold's surge; Rio Tinto's London shares rose 1.5% while Glencore was up 1.2%. Gold and silver miner Fresnillo was up 3.6%.

--The U.S. dollar hit a two-month low against a basket of currencies and Treasury yields were marginally higher. Sterling rose to a two-month high against the weaker dollar but was flat against the euro. The yen also strengthened. Bitcoin rose 0.4%.

--Gold prices continued to push higher, extending a record run to hit a fresh high. Futures were recently up 0.3% to $3,730.80 after reaching $3,731.90 earlier in the session.

--Oil benchmarks slipped but held within a narrow range as investors await clarity on potential Western sanctions targeting Russian supplies. Brent crude and WTI both fell 0.5% to $67.12 and $63.02 a barrel, respectively.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

September 16, 2025 04:29 ET (08:29 GMT)