Global markets traded cautiously on Wednesday ahead of the Federal Reserve’s final policy decision of the year, with Wall Street edging higher, Europe ending flat, and Asia mostly softer on mixed Chinese data and central-bank signals. News of a potential record-setting SpaceX IPO added some buzz to an otherwise temperate trading tone across regions.
US stocks moved higher on Wednesday as investors positioned for the Federal Reserve’s final policy decision of the year, with the DOW up +0.4%, the S&P 500 edging +0.1% higher and the NASDAQ slipping -0.3%. Rate-cut expectations remained anchored, with markets pricing a 90% chance of a third consecutive quarter-point reduction even as divisions within the FOMC resurfaced over the risks of easing too aggressively amid lingering inflation. The US 10-year yield and US two-year yield both fell -3bp to 4.16% and 3.588% respectively as traders awaited Chair Powell’s tone on the path for 2026. Corporate moves were mixed, with JPMorgan advancing +1.7% as investors grew optimistic that a rate cut would revive the US economy, while Microsoft eased -2.0%. Meanwhile, silver extended gains beyond US$60/oz on tightening supply and further easing bets, and SpaceX gained attention after reports it is preparing a record-setting IPO that could value the company at roughly US$1.5 trillion as early as 2026.
European stocks finished Wednesday little changed as investors remained cautious ahead of the Federal Reserve’s final policy decision of the year, leaving the STOXX 600 up +0.1%. Germany’s DAX dropped -0.1% and France’s CAC 40 slipped -0.4%, while the UK’s FTSE 100 rose +0.1% as recent remarks from ECB officials reinforced a patient, wait-and-see stance on policy. Anglo American (+0.1%) and Teck Resources (-2.6%) secured shareholder approval for their merger, paving the way—pending regulatory clearance—for the creation of the fifth-largest global copper producer.
Asian stocks declined on Wednesday as investors assessed mixed Chinese inflation data and awaited the Federal Reserve’s rate decision. China’s Shanghai Composite slipped -0.2% after CPI accelerated modestly while factory-gate deflation continued to deepen. Hong Kong’s Hang Seng rose +0.4%, supported by tech names after Nvidia was cleared to resume some AI chip sales to China, though reports of potential H200 restrictions from Beijing capped gains. Japan’s Nikkei 225 dipped -0.1% ahead of the Fed and next week’s Bank of Japan meeting, as Governor Ueda signalled the bank is edging closer to its inflation target, keeping expectations of a rate hike alive and leaving the yen fragile. South Korea’s Kospi fell -0.2% as investors awaited the FOMC outcome and defence stocks eased amid signs of progress in Ukraine–Russia peace negotiations. Australia’s ASX 200 closed marginally lower as a hawkish tone from RBA Governor Michele Bullock and weakness in financials, real estate, and tech offset gains in miners, while New Zealand’s NZX 50 dropped -0.6% to a three-week low, dragged by Sky TV (-2.9%) and Fletcher Building (-3.2%).
WTI crude lost -0.3% to US$58.05/bbl, gold inched down -0.2% to US$4,200.34/oz, and iron ore fell -0.1% to US$106.29/MT.