Global Stocks Waver on Fed Policy Outlook

U.S. stock futures rise

Gold, crude prices drop

GM and Cigna to report earnings

European indexes and U.S. stock futures rose a day after the Federal Reserve cut interest rates but didn’t signal that more stimulus was on the way.

The Stoxx Europe 600 was up 0.5% in late-morning trading, with broad-based rises balancing a drop in the basic-resources sector.

Shares of U.K. medical-device maker ConvaTec Group jumped 17% after it reported falling profit in the first half of the year but backed its full-year guidance. London Stock Exchange Group shares also climbed, by 6.3%, after it confirmed Thursday it will buy Refinitiv.

Fed Chairman Jerome Powell disappointed investors Wednesday.


Liu Jie/Zuma Press

Shares for German industrial giant Siemens AG fell 4.6% after it reported a drop in its quarterly profits and said a weakening global economic environment was hurting its key industrial businesses. Chief Executive Joe Kaeser said “geopolitics and geoeconomics are harming an otherwise positive investment sentiment.”

Royal Dutch Shell saw shares slide 4.6% after profits fell. The company cited lower oil and gas prices and weaker refining margins, outweighing a rise in production.

In Asia, both China’s benchmark Shanghai Composite Index and Hong Kong’s Hang Seng fell 0.8%.

The latest round of U.S.-China trade talks concluded Wednesday without any compromise, though both sides described the talks as constructive. The next round will be held in September.

U.S. stocks fell Wednesday after Fed Chairman Jerome Powell disappointed investors when he rolled back expectations for future interest-rate cuts.

The 10-year U.S. Treasury yield edged up Thursday to 2.054%, from 2.034% Wednesday. Yields rise when bond prices fall.

The WSJ Dollar Index, which measures the currency against a basket of its peers, climbed 0.2%.

In commodities, global benchmark Brent crude fell 1.1% to $64.37 a barrel. Gold dropped 1.4%.

Second-quarter earnings have so far surprised investors with a stream of better-than-expected results. Investors will be looking to see if that continues with many reports due Thursday from firms including Cigna Corp., General Motors Co. and Verizon Communications Inc.

Data on U.S. manufacturing are also expected Thursday and the Bank of England will release its decision on interest rates.

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