Markets await US Fed’s announcement while slide in oil lifts bonds
Stocks were left in the dust by bonds as US treasuries hit their lowest since August
Sydney — Asian share markets played second string to bonds on Wednesday as a spectacular fall in the price of oil spurred speculation the US Federal Reserve might be done with tightening after its policy meeting later in the session. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4%, while Shanghai blue chips were flat. Japan's Nikkei steadied after an early dip and E-Mini futures for the S&P 500 added 0.4%. Oil had stolen the show as a supply glut saw Brent shed almost 6% overnight. US crude was last down another 13 US cents at $46.11 a barrel, while Brent recouped just 4c to $56.30. Brent's 35% plunge since October is sending a disinflationary pulse through the world at a time when trade and economic activity are already cooling. That has only added to pressure on the Fed to abandon its commitment to yet more hikes. On Tuesday, US President Donald Trump warned the central bank not to "make yet another mistake", while a Wall Street Journal editorial called for ...
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