European stocks track Wall Street higher ahead of Fed
Posted June 14
LONDON — European shares gained Wednesday following Wall Street's tech-driven rise and as investors positioned for an anticipated rate hike from the U.S. Federal Reserve.
KEEPING SCORE: In Europe, France's CAC-40 was up 0.7 percent at 5,297 while Germany's DAX advanced 1.1 percent at 12,908. London's FTSE 100 rose 0.5 percent to 7,541. Wall Street was poised for a steady opening with Dow futures and the broader S&P 500 futures up 0.1 percent.
WALL STREET: On Tuesday, U.S. stocks bounced back to record highs as investors brought an end to a two-day drop for technology companies. Energy and consumer-focused companies also made outsize gains.
FED WATCH: The Fed ends a two-day policy meeting later, and investors expect the central bank to raise interest rates for the third time since December. They also are watching for the Fed's latest views on inflation and hints on how aggressive it will be in raising interest rates in the future.
ANALYST TAKE: "The backdrop to the Fed's policy announcement later today is one where US equity markets moved to record highs yesterday, shrugging off last Friday's sell off in the tech sector," said Neil MacKinnon, global macro strategist at VTB Capital.
ASIA'S DAY: The Shanghai Composite Index lost 0.7 percent to 3,130.67 and Tokyo's Nikkei 225 retreated 0.1 percent to 19,883.52. Hong Kong's Hang Seng Index advanced 0.1 percent and Seoul's Kospi retreated 0.1 percent to 2,372.64. Sydney's S&P ASX 200 rose 1.1 percent to 5,833.90 and India's Sensex added 0.2 percent to 31,178.84.
ENERGY: Benchmark U.S. crude fell 37 cents to $46.08 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, shed 27 cents to $48.45 in London.
CURRENCY: The euro was flat at $1.12 while the dollar rose 0.2 percent to 110.31 yen.