Global benchmarks decline as investors anticipate US rate cut

Global shares were mostly lower, trading in a narrow range ahead of a Federal Reserve meeting later on Wednesday that’s expected to result in the third cut to interest rates this year.

France’s CAC 40 slipped 0.3 per cent in early trading to 8,026.35, while the German DAX dipped 0.3 per cent to 24,081.63. Britain’s FTSE 100 added 0.1 per cent to 9,652.21. The future for the S&P 500 edged 0.1 per cent higher, and that for the Dow Jones Industrial Average was little changed.

In Asian trading, Japan’s benchmark Nikkei 225 dropped 0.1 per cent to finish at 50,602.80. Australia’s S&P/ASX 200 slipped nearly 0.1 per cent to 8,579.40. South Korea’s Kospi declined 0.2 per cent to 4,135.00.

Hong Kong’s Hang Seng gained 0.4 per cent to 25,540.78, while the Shanghai Composite shed 0.2 per cent to 3,900.50. Taiwan’s Taiex surged 0.8 per cent.

Lower interest rates can boost the economy and prices for investments, though they can worsen inflation.