New Delhi: Global markets moved into cautious territory on Wednesday as investors waited for the United States Federal Reserve to announce its interest rate decision and looked ahead to major earnings from leading artificial intelligence companies. The uncertainty led to mixed movements across stocks, currencies and commodities.
European stocks slipped slightly in early trade and US futures showed only modest gains as traders held back from making big moves before the Fed’s guidance became clear. Investors are expecting an interest rate cut but remain unsure about how many cuts the central bank will signal for the coming year.
The currency market also saw pressure, with the Japanese yen continuing its sharp decline. US Treasury yields edged higher, reflecting concerns about how long borrowing costs will remain elevated.
Commodity markets were more active. Silver climbed to another record high as investors looked for safe assets during a period of volatility, while gold held steady but firm.
Alongside central bank uncertainty, markets are preparing for earnings from major technology and AI sector companies including Oracle and Broadcom. Analysts say these results will show whether the high valuations in the fast growing AI industry can be justified.
Developments in Asia added to the global picture. China reported a strong export performance, pushing its trade surplus for the first eleven months of the year above one trillion dollars.
However, weak import numbers showed that domestic demand in China remains soft. The International Monetary Fund repeated its call for China to fix deepening economic imbalances and reduce its heavy reliance on exports.
Some Asian investors are also shifting funds into debt markets in Gulf countries as they look for more stable returns during uncertain global conditions.
With central bank decisions approaching and economic signals mixed across major economies, analysts expect markets to remain sensitive and unpredictable in the coming days.