24 September, 2017
Financial markets are largely subdued as investors remain cautious ahead of the Federal Reserve's announcement of its monetary policy meeting.
Tuesday marked the start of a two-day meeting of the US central bank.
The futures market implied traders saw a 73 percent chance of the Fed raising rates at its December 12-13 meeting, up from 52 percent before the Fed's latest policy statement and forecast, CME Group's FedWatch tool showed.
According to CME FedWatch, markets are pricing in a more than 50 percent chance of a Fed hike in December, up from around 31 percent as recently as September 8. "Janet Yellen has a press conference, and that and the statement will perhaps provide some insight into what they're going to do in terms of deleveraging their balance sheet", said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
The Fed kept its interest rates unchanged in a target range of 1% to 1.25% on Wednesday, but two-thirds of the policy setting committee deem another 25 basis point rise by the end of 2017 as appropriate.
Higher U.S. yields bolstered the greenback, with the benchmark 10-year note yield notching a one-month high of 2.237 percent overnight.
In his first speech before the United Nations General Assembly on Tuesday, "the United States has great strength and patience, but if it is forced to defend itself and its allies, we will have no choice but to totally destroy North Korea". The Russell 2000 index of smaller-company stocks declined 0.1 percent, to 1,440.40.
A currency trader stands near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between US dollar and South Korean won at the foreign exchange dealing room in Seoul, South Korea, Wednesday, Sept. 20, 2017.
The dollar eased 0.1 percent versus the yen on Tuesday, but hovered near an eight-week high, supported as USA treasury yields continued to climb after signs of firming inflation. Australia's S&P/ASX 200 edged up almost 0.1 percent to 5,724.70.
Barring any geopolitical events that could send investors into the safety of the gold market, rising Treasury yields are expected to continue to limit gold's upside potential while sending prices lower.
MSCI's gauge of stocks across the globe gained 0.14 percent and hit another record high.
The metal has fallen four per cent since hitting a more than one-year high of $US1,357.54 earlier this month, as the USA dollar recovered from lows and as fading concerns over North Korea's nuclear ambitions cut demand for bullion as a haven from risk.
WALL STREET: U.S. stock markets finished with a slight gain on Tuesday.
Crude oil prices were unsteady, but stayed near last week's multimonth highs.
ENERGY: Benchmark U.S. crude rose 1 cent to $49.92 a barrel.
