World shares are mixed ahead of Fed’s rate decision

World markets were mixed on Wednesday as investors awaited the outcome of the U.S. Federal Reserve’s policy meeting, widely expected to leave interest rates unchanged—despite pressure from former President Donald Trump to cut borrowing costs.

European Markets Flat to Lower

• Germany’s DAX hovered nearly flat at 23,250.56
• France’s CAC 40 dipped 0.5% to 7,661.64
• UK’s FTSE 100 fell 0.3% to 8,573.67
• Futures for the S&P 500 and Dow Jones rose about 0.6%, pointing to a stronger U.S. open

Asia Sees Modest Gains Amid China Stimulus and Trade Hopes

Asian markets got a lift after the U.S. and China agreed to hold trade talks in Switzerland later this week. This, coupled with new stimulus measures from Beijing—including interest rate cuts—offered some support to markets.

• Shanghai Composite rose 0.8% to 3,342.67
• Hong Kong’s Hang Seng gained just 0.1%, ending at 22,691.88 after jumping over 2% earlier
• Tokyo’s Nikkei 225 slipped 0.1% to 36,779.66
• Australia’s ASX 200 rose 0.3% to 8,178.30
• South Korea’s Kospi climbed 0.6% to 2,573.80

Analysts say the muted market response suggests investors were underwhelmed by the scale of China’s stimulus, which lacked major new government spending. “These moves may support growth at the margin, but aren’t a substitute for larger fiscal support,” said Julian Evans-Pritchard of Capital Economics.

U.S. Markets Weaken on Trade Worries, AI Stock Selloff

On Tuesday, U.S. markets ended lower as trade tensions continued to weigh on corporate sentiment.

• S&P 500 dropped 0.8%, its second straight loss after a nine-day rally
• Dow Jones fell 0.9%
• Nasdaq declined 0.9%

Palantir Technologies was a major drag, sliding 12% as investors grew cautious about overvalued AI stocks. Palantir’s shares, once at $20 a year ago, are now near $110, sparking concern about sustainability.

Tariff Uncertainty Fuels Import Surge and Trade Deficit

Ongoing uncertainty around tariffs has left U.S. consumers more cautious and triggered a spike in imports ahead of possible future levies. As a result, the U.S. trade deficit hit a record $140.5 billion in March. The economy shrank at a 0.3% annual pace in Q1, driven by the import surge.

DoorDash also weighed on sentiment, falling 7.4% after missing revenue expectations for the latest quarter.

Bonds, Oil, and Currency Markets

• 10-year Treasury yield rose slightly to 4.32%
• U.S. crude oil climbed 54 cents to $59.63/barrel
• Brent crude added 44 cents to $62.57/barrel
• Dollar strengthened to 143.39 yen
• Euro slipped to $1.1348

Investors now await the Fed’s official statement for guidance on interest rate policy moving forward.