Global stocks remain under pressure driven by surging bond yields and rising inflation pressures. Wall Street closed sharply lower on Tuesday; technology companies led a broad slide in stocks.
Shares in Aramco, the Saudi-owned oil giant, spiked 10% Wednesday when they hit the market in the
world's biggest-ever IPO. The shares leapt to 35.2 riyal ($9.39) each, up from the IPO price of 32 riyals
and at the daily limit of price moves allowed by the Tadawul exchange.
Oil prices fell on Wednesday after industry data showed an unexpected build in crude inventory in the
United States and as investors waited for news on whether a fresh round of U.S. tariffs on Chinese
goods would take effect on Sunday.
The U.S. dollar clawed higher on Wednesday as investors awaited the outcome of the Federal Reserve
meeting and drew some support from hopes that U.S. President Donald Trump will delay the
imposition of tariffs on Chinese goods.
Gold was little changed on Wednesday as market activity remained largely subdued ahead of the U.S. central bank's economic policy statement and fast-approaching tariffs deadline, while palladium hovered near previous session's record high.
Today US Consumer Price Index from the United States will be released, which is expected to drop to 0.2% from the previous month’s 0.4%. Investors are also waiting for the forecast of US economic growth from policymakers who are attending a two-day meeting of the Federal Reserve, which will end on Wednesday. The Federal Reserve is expected to hold its interest rates unchanged in this meeting.
AUD/NZD: The pair held above the support and moved 40 pips up, currently trading above 1.04400. We may see further upside to 1.0480/1.05.
GOLD: Gold trading unchanged today ahead FOMC rate decision and press conference. We strictly watch the important levels for breakout 1456 and 1470 for today.
US Federal Reserve Monetary Policy Decision - 19 GMT & Press conference 19.30 GMT (The FOMC is widely expected to leave the Fed funds rate unchanged at 1.75% in December). The main focus of this FOMC meeting will be the release of the latest Summary of Economic Projections. After considering uncertainties like the trade war, China’s slowdown and financial risks a rate cut during H1 2020 remains high demand.
Gold price trades below the key support area of $1812. Technically the overall momentum remains mixed for the metal after the bulls failed to extend the rally.
The US retail sales report for December is the highlight of today’s economic calendar. The commerce department will release the retail sales data at 13:30 GMT.
Airline stock Delta Airlines (NYSE: DAL) is scheduled to announce its fourth-quarter earnings report today before the market open. Delta is expected to post quarterly earnings of $0.12 per share and revenues are expected to be $9.20 billion.