European equities fluctuated on Wednesday trading, after
concerns emerged that a possible trade deal between China
and the United States could be delayed, while investors are also awaiting the
Fed’s interest rate decision later in the day.
As of 08:19 GMT, the Euro STOXX 600 slumped 0.01 percent to
398.20, France CAC 40 was 0.17 percent up at 5,740.14 and Germany’s DAX
descended 0.02 percent to 12,939.62.
In Britain, FTSE 100 plummeted 0.34 percent to 7,306.26.
Some of the optimism that spread in markets at the beginning
of the week after statements from both sides about signing a trade agreement
faded as a U.S. official said on Tuesday that the U.S. and China were
continuing to work on the initial trade agreement, but it was less likely to be
completed in time for the signing of the two leaders next month.
A Chinese source familiar with the matter told Reuters on
Wednesday that US officials were still pushing for implementation, while
Beijing was reluctant to commit to large numbers of agricultural purchases for
a specific period.
On the other hand, investors will focus today on the Federal
Reserve’s monetary policy decision, where market expect further easing.
Analysts are in favor of seeing an in interest rate cut by 25
basis point to 1.75 percent from the current 2.00 percent, with another 30
percent chance of another rate slash in December.
U.S. stock indexes fell Wednesday, with the Dow Jones
Industrial Average dropping 0.07 percent to 27,071.4 points. The S&P 500 plunged 0.08 percent to 3,036.90 points,
after recording an all-time high on Monday, while the heavy-tech NASDAQ index
subtracted 0.59 percent to 8,276.8 points.
Spot gold edged up slightly by 0.13 percent to trade at $1492.69 an
ounce, while Brent crude oil and West Texas index slipped 0.54 and 0.11 percent