North American stock markets fall on disappointment over Fed rate cut decision


The S&P 500 drifted less than 0.1% higher on Wednesday.

Major stock indexes have rallied this year as investors have cheered the prospect of a rate cut.

The Canadian dollar traded at an average of 76.06 cents USA, compared with Tuesday's average of 75.94 cents US.

Asian stocks were rattled after tweets from President Trump on Tuesday dampened expectations for a breakthrough in U.S.

On data, ADP payrolls for July will be released at 08:15 a.m. ET and Q2 Employment cost index figures and the Chicago Purchasing Manager Index (PMI) data for July will follow.

Pending home sales and consumer confidence numbers will come out at 10:00 a.m. ET.

Apple Q2 results coming after the bell is keenly awaited.

Stocks tumbled in Canada following a much-expected move by the U.S. Federal Reserve to lower interest rates for the first time in more than a decade.

Crude oil prices were down $0.06 to $57.99. It was a move widely anticipated by many analysts and is the first time the central bank has reduced the benchmark interest rate since it battled the financial crisis in 2008.

PVM Oil Associates analyst Stephen Brennock believes rate cut would support oil prices as it would expand the US oil demand and add downward pressure on the dollar.

Tensions in the Middle East have slightly ebbed but the scope of disruption and escalation continues to be high. Trump cautioned China against skipping a trade deal and its plan to wait for the 2020 polls to get over. In the region, the Bank of Japan made a decision to keep monetary policy steady.

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The three gainers proved to be energy, adding 1.1%, utilities, inching up 0.1%, and consumer discretionary, squeezing ahead 0.04%.

Japan's Nikkei 225 fell 0.86 percent while the Topix index fell 0.66 percent.

Hong Kong's Hang Seng index pared losses from Monday to bounce back in early trade and the index added 0.24 percent at the final hour of trading. South Korea's Kospi closed 0.69 percent lower.

Indian shares were up Tuesday.

Vested Chief Economist Milton Ezrati on the Federal Reserve and concerns over US trade tensions with China.

The NSE Nifty jumped up 0.32 percent as of 0455 GMT/12.55 ET. Australia's /ASX 200 slipped 0.47 percent.

He doesn't see any urgency for the Bank of Canada to follow the Fed's lead.

"The positive open follows mildly positive USA markets on Monday and largely positive Asian markets this morning", commented Deepak Jasani, senior VP at HDFC Securities. The British pound slumped to a 28-month low on Monday after market fears increased that the United Kingdom would leave the European Union without a deal.

Wall Street stocks opened higher on Wednesday, with traders preparing themselves for the outcome of the Federal Reserve's latest policy meeting later in the day.

Spot gold was down 0.1 percent at $1,425.11 per ounce as of 0427 GMT.