Global stocks mixed ahead of central bank meetings
SEOUL, South Korea -Global stock markets were mixed Tuesday ahead of U.S. Federal Reserve and Bank of Japan policy meetings later this week. Commodity prices ran out of steam, dragging on big miners.
Britain's FTSE 100 rose 0.5 percent to 6,291.05 and Germany's DAX added 0.4 percent to 10,337.23. France's CAC 40 advanced 0.4 percent to 4,566.08.
U.S. stocks looked set for moderate gains: Dow futures rose 0.2 percent while S&P futures added 0.1 percent.
"After a brief pause, share market volatility is set to resume this week as central bank meetings, important economic releases and U.S. company reporting all offer potentially game changing assessments of the global economy and the fortunes of individual companies," said Michael McCarthy, chief market strategist at CMC Markets.
Investors are not expecting the Federal Reserve to change policy this month but its two-day meeting this week will be watched for indications about its future moves. The result will be announced late Wednesday in Asia and will affect the region's financial markets on Thursday.
A string of economic reports are due before the Bank of Japan's monthly policy meeting on Thursday, including Japan's consumer price index, unemployment figures, retail sales and industrial production. Expectations are rising that the BOJ will opt for more stimulus.
Asian markets finished mixed after a weak start. Japan's Nikkei 225 fell 0.5 percent to 17,353.28 and South Korea's Kospi rose 0.3 percent to 2,019.63. Hong Kong's Hang Seng index gained 0.5 percent to 21,407.27 but Australia's S&P/ASX 200 dropped 0.3 percent to 5,283.60. The Shanghai Composite index finished 0.6 percent higher at 2,964.70. Taiwan was higher but most markets in Southeast Asia finished lower.
The rally in prices for commodities such as iron ore has paused, affecting major Australian miners and others in the sector. Shares in global miner Rio Tinto Ltd. fell 3.1 percent, while BHP Billiton lost 3.0 percent.
Benchmark U.S. crude added 24 cents to $42.88 per barrel in New York. The contract fell $1.09, or 2.5 percent, to $42.64 a barrel on Monday. Brent crude, used to price international oils, gained 36 cents to $44.84 a barrel in London.
The dollar fell to 110.77 yen from 111.12 yen while the euro strengthened to $1.1294 from $1.1268.