Mixed Open Likely For US Markets, Oil Down

Mixed or flat open likely for the U.S markets Wednesday after trends in key stock index futures looked mixed in the morning.

Dow futures traded 12 points higher at 03:00 a.m. ET but S&P 500 and Nasdaq futures were mixed.

The big event of the day will be the U.S. Federal Reserve meeting culminating with a policy announcement. The Fed announcement is expected at 1800 GMT, followed by Chairman Jerome Powell’s news conference.

The central bank is expected to keep rates steady and investors are awaiting Fed direction on rate projections for the coming years. Global trade developments also weighed on the market amid media reports that China is dithering on certain commitments made to America.

No economic data is expected Wednesday. Among companies, General Mills and Williams-Sonoma will be reporting their earnings.

Oil price slips

Meanwhile, oil prices slipped Wednesday from the four-month high as demand worries expanded on the back of anxiety over economic growth.

Oil prices are supported by supply cuts of producer club OPEC and also by the U.S. sanctions against Iran and Venezuela.

On Wednesday, the oil price fell 0.2 percent as International Brent crude oil futures per barrel price slumped to $67.50 from the last close.

Prices in the U.S. West Texas Intermediate (WTI) crude futures slipped 20 cents taking per barrel price to $58.83.

The crude prices appreciated more than a quarter this year after OPEC and allies started holding back 1.2 million barrels per day.

“The shaky supply outlook is top of mind in the oil market,” said Norbert Ruecker, head of economics at Swiss bank Julius Baer.

Asian stocks tumble

Shares in major Asian stock markets slipped on Wednesday as uncertainty loomed over the progress of U.S.-China trade talks.

Mainland Chinese markets traded lower with Shenzhen component plunging 0.398 percent and Shanghai Composite turning almost flat.

Hong Kong’s Hang Seng index declined 0.33 percent in the last trading hour while South Korea’s Kospi closed flat. Australia’s ASX 200 ended 0.32 percent lower.

The exception was Japan’s Nikkei 225 that bucked the trend and closed 0.2 percent higher. So did the Topix index at 0.26 percent higher.

European stocks traded lower on Wednesday morning as investors looked for policy guidance from the U.S. Federal Reserve. The Stoxx 600 was down 0.4 percent during morning trade with and most sectors negative.

Gold down

Gold prices showed a downtrend Wednesday after the dollar gained strength. Spot gold fell 0.4 percent to $1,301.38 per ounce while U.S. gold futures slipped 0.4 percent.

“The firm dollar and gains in equities are headwinds for gold today and currently the risk appetite is slightly high,” said Benjamin Lu, an analyst with Singapore-based Phillip Futures.