Global stocks mostly rise ahead of key Fed meeting
CGTN
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The world's stock markets mostly ticked upwards on Monday as investors moved cautiously at the start of a busy week packed with key interest rate decisions, in particular from the U.S. Federal Reserve.

The indices in London and Paris closed modestly ahead after Hong Kong stocks rallied, with investors there cheering a decision by the city to suspend plans to push through a fugitive law.

Wall Street also advanced as traders took a breather ahead of the Group of 20 summit next week, where Chinese President Xi Jinping and his U.S. counterpart Donald Trump are due to hold hotly-awaited talks on their long-running trade war.

One of those swirling headlines is the ongoing tension between the U.S. and Iran. On Monday Tehran announced its uranium stockpile will soon pass the limit set under a nuclear deal that Washington abandoned last year.

The news exacerbated an already strained relationship after the U.S. blamed Iran for two tanker attacks in the Gulf of Oman last week, claims that Tehran calls "baseless."

"Tensions in relation to trade and the Iranian situation still persist and they are hanging over stock markets," said analyst David Madden at trading firm CMC Markets UK.

The Federal Reserve, Washington, DC, U.S. /VCG Photo

The Federal Reserve, Washington, DC, U.S. /VCG Photo

Fed U-turn?

Naeem Aslam at London-based trading firm ThinkMarkets said this week "the focus is going to remain on central banks and their monetary policies."

The U.S. central bank will unveil its monetary policy announcement on Wednesday, followed by both the Bank of Japan and the Bank of England on Thursday.

The Fed is not expected to shift course this week, but could signal a rate cut down the road.

"Anything less than a clear signal that the Fed is open to cutting rates soon in response to building downside risks to the U.S. economic outlook could leave financial markets disappointed," noted MUFG currency analyst Lee Hardman.

"The U.S. rate market is well priced for at least a (quarter-point) rate cut to be delivered by July."

Among individual stocks, shares in Sotheby's auction house soared by more than 58 percent after the company announced it would be acquired by French telecoms and media mogul Patrick Drahi.

Facebook shares rose 4.2 percent as the world's biggest social network prepares to outline details on Tuesday of a virtual currency launching next year.

Source(s): AFP