Gold Silver Reports (GSR) – Stocks in Asia Retreat After Fed — Asian stocks tracked U.S. shares lower after the Federal Reserve said inflation is close to its target, without indicating any need to waver from its path of gradually tightening monetary policy. The dollar declined.
Hong Kong stocks underperformed just as Chinese smartphone maker Xiaomi Corp. filed for what’s expected to be the world’s biggest IPO since 2014. Equities rose in Sydney, with recently battered Australian banks extending a recovery. Japan is closed for a holiday. The dollar retreated after hitting its highest since January. The Australian dollar climbed after a widening in the nation’s trade surplus and better-than-expected building approvals.
Asian stocks tracked U.S. shares lower after the Federal Reserve said inflation is close to its target, without indicating any need to waver from its path of gradually tightening monetary policy. The dollar declined.
Fed officials may have signaled their willingness to allow inflation to exceed their 2 percent goal somewhat by adding a reference to the “symmetric” nature of their target. The Federal Open Markets Committee also noted a soft patch in growth in the first quarter, removing a reference in the March statement that the economic outlook had “strengthened in recent months.” They balanced that out by noting strong growth in business investment.
The U.S. begins trade talks in China on Thursday, with both sides dialing back expectations. Beijing won’t agree to preconditions that include abandoning its advanced manufacturing program and agreeing to cut the trade gap by a fixed amount, a Chinese official said. American delegates said earlier that a breakthrough is unlikely, and they might leave early if unsatisfied.
“When you think about the things that have been weighing on the market — the potential for trade war with China, Nafta breaking up, rising rates and of course the potential rolling over in growth — I think the one that is really weighing the most heavily is trade and that’s why the market tends to swing the most violently on every new piece of news,” RiverFront Investment Group Chairman Michael Jones.
Elsewhere, oil held below $68 a barrel as a rise in stockpiles overshadow concerns about U.S. sanctions on Iran. The S&P 500 Index ended near session lows Wednesday after briefly pushing higher. Gold advanced. – Neal Bhai Reports (NBR)
