Global Stocks Slip Ahead of Fed Decision

Asian stocks drop, European shares waver

Crude prices tick higher

U.S. Treasury yields down

European stocks edged down after deeper losses in Asia, ahead of a Federal Reserve policy decision Wednesday when the central bank is expected to cut interest rates.

The Stoxx Europe 600 was down 0.1%, with gains in the construction and oil-and-gas sectors offset by losses in real estate.

Shares of Next, the British clothing company, notched the biggest rise at 7.6% after it raised its forecast for profit and sales.

A Beijing securities brokerage.


Photo:

wu hong/Shutterstock

Asian stocks were rattled after tweets from President Trump dampened expectations Tuesday for a breakthrough in U.S.-China trade talks. Hong Kong’s Hang Seng was down by 1.3% and the Shanghai Composite Index fell by 0.7%.

Shares of Chinese property developers fell after the country’s top leadership vowed not to use the real-estate market as a tool to arrest an economic slowdown. At a meeting Tuesday, the Communist Party’s top decision-making body reiterated that housing is “used for living, not for speculation,” adding that it “will not use real estate as a short-term means of stimulating the economy.”

In the U.S., the yield on the 10-year Treasurys fell to 2.051% from 2.063% Tuesday. Yields fall when bond prices rise. The WSJ Dollar Index, which measures the currency against a basket of peers, slipped by 0.1%.

On the earnings front, General Electric and Qualcomm are among the large companies due to report Wednesday.

European data on second-quarter gross domestic product and inflation are also due Wednesday.

Global oil benchmark Brent crude was up 0.6% at $65.03 a barrel, amid continued tensions in the Middle East and expectations of lower interest rates in the U.S. Gold edged up 0.1%.

Write to Lauren Almeida at lauren.almeida@wsj.com

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