Wall Street ended the day higher on Wednesday as investors assessed the latest Federal Open Market Committee (FOMC) meeting minutes. The Nasdaq rose 0.60%, while the S&P 500 and Dow Jones reached all-time highs, rising 0.70% and 1%, respectively. Traders evaluated the most recent Federal Reserve minutes and geared up for the release of key inflation data. Some traders believe there's an increased likelihood that the Fed would hold rates constant in November after the Fed's September meeting minutes showed that a "substantial majority" of officials favoured a dramatic 50 basis point rate decrease.
Meanwhile, the rand extended its losses on Wednesday, with the FTSE/JSE All Share Index paring back earlier declines. Attention remains on developments in the Middle East, where heightened geopolitical tensions are raising concerns about a potential escalation that could push oil prices higher.
WTI crude oil futures dropped 0.40% to $73.20 per barrel on Wednesday, following a 4.60% slide the day before, as weak demand and growing supply pressured prices. The EIA reported a 5.81 million barrel increase in US crude inventories, surpassing the expected 2 million barrel rise, while API data showed a nearly 11 million barrel increase.
In Asia, the Hang Seng tumbled 1.40% to close at 20 637, extending losses after experiencing its worst day since 2008 in the previous session. All sectors declined, and the market fell further from a 32-month high reached earlier in the week, weighed down by a continued slump in mainland Chinese stocks. In contrast, Japan’s Nikkei gained 0.87%, recovering from previous losses, with technology stocks leading the rebound, buoyed by Wall Street’s overnight rally amid growing optimism for a soft landing for the US economy and easing oil prices.
European stocks gained momentum in the afternoon and closed higher on Wednesday, reversing some of the week’s earlier losses as markets assessed the outlook for credit costs ahead of today’s US CPI report. There was also speculation about additional fiscal stimulus from China after the economic planning agency's emergency briefing raised doubts about the adequacy of previous measures, triggering a selloff in European stocks with Asian exposure.
