Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks dip from record levels ahead of Fed

Stock MarketsApr 27, 2021 05:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Screen displays Nikkei share average and stock indexes outside a brokerage in Tokyo 2/2

By Danilo Masoni and Stanley White

MILAN (Reuters) - Shares dipped from record highs on Tuesday as optimism about the economic recovery was dented by caution ahead of the Federal Reserve's policy decision and a raft of earning updates.

The MSCI world equity index, which tracks shares in 49 countries, fell 0.1% by 0810 GMT, following a muted session in Asia and slight early losses in Europe.

The index is up 9% year-to-date, underpinned by expectations that rising vaccination rates will allow more economies to recover and give a big boost to company profits.

Earnings in Europe are expected to have risen 61% in the first quarter, while U.S. profits are seen up more than 31%, according to the latest Refinitiv IBES estimates.

Many investors, however, stayed on the sidelines ahead of the Fed's policy meeting ending on Wednesday, where the U.S. central bank is expected to confirm that it will maintain its easy monetary policy to bolster the economy.

Markets were also awaiting for results from U.S. tech heavyweights Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) later on Tuesday.

"There are yet to be any real punctures in the global risk balloon at the moment," said Deutsche Bank (DE:DBKGn) strategist Jim Reid in a note. "We'll have to wait and see if these upcoming events might throw this off course."

In extended trade, Tesla (NASDAQ:TSLA) shares dipped about 0.4% even after the electric car maker beat Wall Street expectations for first-quarter revenue.

S&P 500 futures rose almost 0.1%, while earlier the MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.06%.

One area of concern was India, which is struggling with a surge of coronavirus infections that has overwhelmed its healthcare system.

Copper prices hit a 10-year high over supply worries in top producer Chile and as investors hope for an improvement in global demand amid a stable economic recovery.

Three-month copper on the London Metal Exchange hit $9,965 a tonne, its highest since March 2011, before retreating.

Oil rebounded after top oil producers stood by their demand forecasts, but there are still downside risks due to surging COVID-19 cases in India, the world's third-biggest oil importer.

Brent crude was 0.5%, at $65.94 a barrel and U.S. oil gained 0.6% at $62.24.

Bond traders were are also closely watching an auction of $62-billion of seven-year U.S. Treasuries later on Tuesday.

The Treasury saw very weak demand at a seven-year debt auction in February, which sparked a brutal market selloff across the globe. The notes also saw tepid, although improved, demand in March.

Ahead of the auction results, seven-year U.S. yields edged up to 1.265%, while benchmark 10-year yields rose slightly to 1.573%.

The dollar hovered near multi-week lows versus major peers but moves were narrow as traders avoided taking out big positions before the bond auction and the Fed meeting.

It was last up 0.08% on the day at 90.961.

The yen pulled back from a seven-week high to fall 0.2% against the dollar after the Bank of Japan lowered its consumer price forecasts only a week after Tokyo and Osaka entered their third state of emergency over a spike in coronavirus infections.

Bitcoin rose 1.2% to $54,715. The world's most popular cryptocurrency soared nearly 10% on Monday, after five straight days of losses, on reports that JPMorgan Chase (NYSE:JPM) is planning to offer a managed Bitcoin fund.

Bitcoin had slumped almost a fifth from its all-time high hit earlier this month.

Stocks dip from record levels ahead of Fed
 

Related Articles

Huntsman Jumps on Report Starboard Has Big Stake in It
Huntsman Jumps on Report Starboard Has Big Stake in It By Investing.com - Sep 28, 2021

By Dhirendra Tripathi Investing.com – Huntsman stock (NYSE:HUN) rose 5.3% in Tuesday’s premarket trading on a report in The Wall Street Journal that activist hedge fund Starboard...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email