European shares were lower after a mixed day in Asia, while the prices of gold and silver soared higher ahead of an interest rate decision by the U.S. Federal Reserve.
Later Wednesday, the U.S. central bank was due to announce its latest move on interest rates. The expectation is that it will hold its main interest rate steady for now.
Germany's DAX lost 0.2% to 24,837.57, while the CAC 40 in Paris sank 1.1% to 8,065.62. Britain's FTSE 100 slipped 0.2% to 10,188.28.
The future for the S&P 500 gained 0.3% while that for the Dow Jones Industrial Average was nearly unchanged.
In Asian trading, South Korea’s benchmark hit a record, lifted by gains for technology shares like computer chip maker SK Hynix, which climbed 5.1%. The Kospi gained 1.7% to 5,170.81.
Tokyo's Nikkei 225 index clawed back early losses to edge less than 0.1% higher, closing at 53,358.71. Energy and technology giant SoftBank Group Corp. helped lift the benchmark, gaining 3.7%, following reports it plans to invest more in OpenAI.
The dollar rebounded slightly against the Japanese yen but has still weakened sharply since last week, putting pressure on shares of major exporters.
The dollar was trading at 152.68 yen, up from 152.19 yen. But it's nearly 4% lower than its level last week, when it surged to near 160 yen, prompting both Japanese and U.S. officials to warn they would intervene to stanch the yen's decline.
The euro slipped to $1.1983 from $1.2041 late Monday. It also has surged against the dollar.
An index measuring the U.S. dollar’s strength against several of its competitors has dropped to its lowest point since 2022.
The price of gold jumped 3.9% to $5,279.30, and silver’s price jumped 6.7%, to $112.69.
Prices of precious metals have been soaring as investors, including major central banks, have sold dollars to park their money in assets considered to be relatively safe in times of turmoil.
Elsewhere in Asia, Hong Kong's Hang Seng index rose 2.6% to 27,826.91, while the Shanghai Composite index added 0.3% to 4,151.24.
Taiwan's Taiex advanced 1.5%, while the Sensex in India gained 0.3%.
On Tuesday, U.S. stocks zigzagged following mixed profit reports from UnitedHealth, General Motors and other big companies.
The S&P 500 rose 0.4% to 6,978.60, edging past its prior all-time high set a couple weeks ago. The Dow fell 0.8% to 49,003.41, and the Nasdaq composite climbed 0.9% to 23,817.10.
Several of Wall Street’s most influential stocks will deliver their latest earnings reports later this week. They include Meta Platforms, Microsoft and Tesla on Wednesday and Apple on Thursday.
The dollar has weakened since President Donald Trump threatened tariffs against several European countries that he said opposed his taking control of Greenland. Such threats, along with worries about risks like the U.S. government’s heavy debt, have periodically pushed global investors to step back from U.S. markets, a move that’s come to be called “Sell America.”
A report from the Conference Board said confidence weakened among U.S. consumers last month. Economists had expected to see a slight improvement, but confidence dropped to its lowest level since 2014, even lower than it was during the COVID-19 pandemic.
Inflation remains stubbornly above the Fed’s 2% target, and lower interest rates could worsen increases in prices for U.S. consumers at the same time that they give the economy a boost. Traders expect the Fed to resume its cuts to interest rates later this year.
The pressure is on companies to deliver strong growth in profits following record-setting runs for their stock prices. Stock prices tend to follow the path of corporate profits over the long term, and earnings need to rise to quiet criticism that they've grown too expensive.
In other dealings early Wednesday, U.S. benchmark crude oil rose 1 cent to $62.40 per barrel. Brent crude, the international standard, gave up 9 cents to $66.50 per barrel.
