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European and Asian Shares Slide Ahead of The Fed and Central Banks Announcements

Associated Press
December 17, 2024 | 5:09 pm
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A worker passes by a stock monitor at the Indonesia Stock Exchange (IDX) building in Jakarta, on Sept. 25, 2024. (Beritasatu Photo/David Gita Roza)
A worker passes by a stock monitor at the Indonesia Stock Exchange (IDX) building in Jakarta, on Sept. 25, 2024. (Beritasatu Photo/David Gita Roza)

Jakarta. European and Asian shares were lower as investors awaited interest rate decisions from the Federal Reserve and other central banks. Futures for the S&P 500 and Dow Jones Industrial Average were down 0.3 percent.

On Wednesday, the Federal Reserve is set to announce its final interest rate decision for the year. It is widely expected to lower the main rate for a third consecutive time in an effort to stimulate the slowing job market after bringing inflation close to its 2 percent target.

The Bank of England is expected to maintain its current interest rates at its policy meeting on Thursday.

Japan's central bank is expected to keep its benchmark rate unchanged when it concludes its monetary policy meeting on Friday, as it gradually raises rates after years of maintaining a negative policy rate to spur inflation and spending.

Germany's DAX edged down slightly by less than 0.1 percent, to 20,306.22, while the CAC 40 in Paris saw a marginal increase of less than 0.1 percent. Britain's FTSE 100 dropped 0.6 percent, closing at 8,210.20.

Bitcoin was trading at $107,262 after briefly approaching $108,000, according to CoinDesk. The cryptocurrency has surged from around $44,000 at the start of the year, driven by expectations that former US President Donald Trump will support digital currencies.

In Asia, the Jakarta Composite Index (JCI) plunged 1.39 percent to 7,157.7. The rupiah also fell 0.6 percent, closing at Rp 16,099 per US dollar. Meanwhile, the US dollar index increased by 0.007 percent, reaching 106.92.

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Tokyo’s Nikkei 225 index dropped 0.2 percent, to 39,364.68, although shares of SoftBank Group Corp. surged 4.4 percent after CEO Masayoshi Son announced plans to invest $100 billion in US projects over the next four years alongside President-elect Trump.Chinese markets continued to decline, with Hong Kong's Hang Seng index slipping 0.1 percent to 19,773.60, and the Shanghai Composite falling 0.7 percent to 3,361.49.

"Recent disappointing data in China is pressuring policymakers to intensify stimulus efforts to stimulate domestic demand," said Stephen Innes of SPI Asset Management.

South Korea’s Kospi dropped 1.3 percent to 2,456.81 as authorities moved to summon impeached President Yoon Suk Yeol over his short-lived martial law decree from the previous week. The country's Constitutional Court began hearings on Yoon's case to determine his fate.

Australia’s S&P/ASX 200 gained 0.8 percent, to 8,314.00, while Taiwan’s Taiex fell 0.1 percent, and Bangkok’s SET dropped 1.7 percent.

On Monday, US stock indexes experienced mixed trading. The S&P 500 rose 0.4 percent, to 6,074.08, while the Nasdaq composite climbed 1.2 percent, to a record high of 20,173.89. The Dow Jones Industrial Average lagged, falling 0.3 percent to 43,717.48.

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