Global shares drift as investors pause ahead of Fed

S&P, Dow open at record highs

Stocks – US Futures Point to Fresh Record Highs at Start of Fed Week

Wall Street rose to fresh record closes on Monday, boosted by gains in banking and financial stocks while investors eyed this week's meeting of the USA central bank in Washington.

In the USA stock market, the Dow Jones Industrial Average rose 63.01 points, or 0.28 per cent, to 22,331.35, the S&P 500 gained 3.64 points, or 0.15 per cent, to 2,503.87 and the Nasdaq Composite added 6.17 points, or 0.1 per cent, to 6,454.64.

Shares of the major banks, including Bank of America, Goldman Sachs and JP Morgan, rose more than 1%, helped by rising bond yields.

Boeing and Caterpillar rose more than 1 percent, providing the biggest boosts to the Dow, while Nvidia's near 5 percent increase pushed the Nasdaq higher.

U.S. Secretary of State Rex Tillerson insisted on Sunday that the U.S. was striving for a "peaceful solution" with Pyongyang, telling CNBC in an interview that he was interesting in bringing "North Korea to the table for constructive, productive dialogue".

Investors do not expect the central bank to increase interest rates in the meeting but will closely watch Fed Chair Janet Yellen's views on inflation, which remains stuck below the Fed's 2-percent target rate.

Policymakers are expected to hold interest rates steady, while providing more detail about plans to unwind its portfolio of securities, including US Treasuries.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 per cent to heights not visited since late 2007.

Global shares were mixed Tuesday, as investors awaited comments from the U.S. Federal Reserve, but Japan's benchmark rose on optimism over a weak yen and a record finish on Wall Street.

ENERGY: Benchmark U.S. crude rose 36 cents to $50.27 a barrel while Brent crude, used to price worldwide oils, advanced 17 cents to $55.67.

On the company front, Northrop Grumman (NYSE:NOC) confirmed that it would buy missile and rocket maker Orbital ATK (NYSE:OA) for $7.8 billion. South Korea's Kospi lost almost 0.1 percent to 2,416.05. Australia's S&P/ASX 200 edged down 0.1 percent to 5,713.60.

US crude futures fell 0.26% to $50.31 by 6:51AM ET (10:51GMT), while Brent oil lost 0.22% to $55.50. The Nasdaq Composite .IXIC added 12.60 points, or 0.2 percent, to 6,461.06. The Shanghai Composite tacked on 0.09% and the Shenzhen Composite traded just 0.08% above the flat line.

Latest News