With Fed looming, global shares remain buoyant
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LONDON — Global stock markets rose Tuesday as oil prices gained for a third day and China reported relatively strong industrial output for November. The focus is increasingly turning onto Wednesday’s policy statement from the U.S. Federal Reserve accompanying the central bank’s anticipated first rate hike of the year.
KEEPING SCORE: In Europe, Germany’s DAX advanced 0.6 per cent to 11,261 while France’s CAC-40 was up 0.6 per cent at 4,791. Britain’s FTSE 100 rose 0.6 per cent, too, to 6,930. Wall Street was poised to push onto further record highs, with Dow futures and the broader S&P 500 futures up 0.3 per cent.
FED WATCH: Investors expect the U.S. Federal Reserve to hike interest rates when it ends a policy meeting Wednesday. It would be only the second increase in a decade. The Fed has kept rates near zero since the 2008 global crisis but its leaders have indicated the U.S. economy is improving enough to start moving gradually toward normal policy. Low interest rates have helped to boost stock prices but are hurting savers who look for income from bank accounts and bonds.
ANALYST TAKE: “The Fed’s projections and dot plot combined with Chair Janet Yellen’s comments in the press conference could be crucial in determining whether the Santa rally makes it to the new year,” said Craig Erlam, senior market analyst at OANDA. “Investors haven’t been easily spooked recently but the prospect of three or four rate hikes next year may be enough to do it.”
