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The yen gave up ground in early trade on Thursday, reversing direction after a sudden surge against the dollar overnight that traders and analysts were quick to attribute to intervention by Japanese authorities.

The dollar was 0.9 per cent higher at 155.98 yen as of 0100 GMT, retracing about half of its late Wednesday surge from around 157.55 to exactly 153 over a period of about 30 minutes. 
The sharp overnight move came in a quiet period for markets after Wall Street had closed and hours after the Federal Reserve had wrapped up its policy meeting, with Chair Jerome Powell reiterating that sticky inflation meant interest rate cuts may be a while in coming.

When contacted by Reuters, Japan's vice finance minister for international affairs, Masato Kanda, who oversees currency policy, said he had no comment on whether Japan had intervened in the market.

"It caught markets off guard because, obviously, it happened in the US session and seemed to be timed with the FOMC to take advantage of a weaker dollar," said Kyle Rodda, senior financial market analyst at Capital.com in Melbourne.

"The 'sneak attack' element really is the MOF (Japan's Ministry of Finance) looking to punish speculators and send a warning about shorting the yen." The dollar remains up more than 10 per cent against the yen this year, as traders push back expectations on the timing of a first Fed rate cut, while the Bank of Japan has signalled it will go slow with further policy tightening after raising rates for the first time since 2007 in March.

The gap between long-term government bond yields in the two countries is a yawning 376 basis points. That helped lift the dollar to a 34-year peak of 160.245 yen on Monday and also spurred a sharp reversal which official data suggested was due to Japanese intervention totalling about $35 billion.

The dollar index , which measures the currency against the yen, euro and four other major peers, ticked up 0.07 per cent to 105.78 on Thursday, following a 0.56 per cent retreat on Wednesday from near six-month highs.

The yen gave up ground in early trade on Thursday, reversing direction after a sudden surge against the dollar overnight that traders and analysts were quick to attribute to intervention by Japanese authorities.


Yen gives up ground vs dollar following surge on suspected intervention

US stock market: US stocks closed mixed on Wednesday after the Federal Reserve left its key interest rate unchanged, as expected, and indicated that while its next move will likely be a rate cut, continued progress on inflation is not assured. The S&amp;P 500 and the Nasdaq ended lower while the Dow Jones Industrial Average notched a modest gain.

The Federal Open Markets Committee concluded its two-day monetary policy meeting with a unanimous decision to let the Fed funds target rate stand at 5.25 per cent-5.50 per cent.

The accompanying statement left the timing of any rate cut in doubt, and Fed officials underscored their concern that the first months of 2024 have done little to build the confidence they seek in falling inflation. At the subsequent press conference, Fed Chair Jerome Powell suggested that while the central bank remains focused on bringing inflation back to its 2 per cent target, he noted progress toward that goal and dismissed the notion of an imminent rate hike.

"Powell didn't rock the boat very much," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "He acknowledged that inflation is still a problem but remained optimistic that it will improve over the coming quarters." "What sparked today's rally was when he said the next move will not be a hike," Detrick added. "He pushed back against that, hard. ... That allowed the bulls to take charge."

Powell said the labor market was normalizing, citing data released on Wednesday showing job openings dropping to a three-year low.

First-quarter reporting season has breezed passed the halfway point, with 310 of the companies in the S&amp;P 500 index having reported. Of those, 77 per cent posted consensus-beating earnings, according to LSEG.

Analysts now expect aggregate first-quarter S&amp;P 500 earnings growth of 6.6 per cent year-on-year, a significant improvement over the 5.1 per cent estimate as of April 1, LSEG data showed.

Among individual companies, Advanced Micro Devices (AMD.O) shed 9.0 per cent after its disappointing artificial intelligence chip sales forecast, while Super Micro Computer (SMCI.O) slid 14.0 per cent following the company's quarterly revenue miss.

The weak results pulled the Philadelphia Semiconductor Index (.SOX) 3.5 per cent lower. Amazon.com (AMZN.O) rose 2.2 per cent on better-than-expected quarterly results as interest in AI helped drive cloud-computing growth.

Johnson &amp; Johnson (JNJ.N) advanced 4.6 per cent after it said it will proceed with a proposed $6.48 billion lawsuit settlement over allegations that its baby powder and other talc products cause ovarian cancer.

Starbucks (SBUX.O) tumbled 15.9 per cent after the coffee chain cut its sales forecast as it posted the first drop in same-store sales in nearly three years. CVS Health (CVS.N) plunged 16.8 per cent after the healthcare company's earnings fell short of consensus and it slashed its annual profit forecast.

The Dow Jones Industrial Average (.DJI) rose 87.37 points, or 0.23 per cent, to 37,903.29, the S&amp;P 500 (.SPX) lost 17.3 points, or 0.34 per cent, to 5,018.39 and the Nasdaq Composite (.IXIC) dropped 52.34 points, or 0.33 per cent, to 15,605.48.

Of the 11 major sectors in the S&amp;P 500, energy shares (.SPNY) recorded the largest percentage loss, while utilities (.SPLRCU) led the gainers. Advancing issues outnumbered decliners on the NYSE by a 1.38-to-1 ratio; on Nasdaq, a 1.50-to-1 ratio favored advancers. The S&amp;P 500 posted 12 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 55 new highs and 105 new lows.

Volume on US exchanges was 12.26 billion shares, compared with the 11.08 billion average for the full session over the last 20 trading days.

US stock market:&nbsp;US&nbsp;stocks closed mixed on Wednesday after the Federal Reserve left its key interest rate unchanged, as expected, and indicated that while its next move will likely be a rate cut, continued progress on inflation is not assured.


S&P 500, Nasdaq end lower after Fed rate decision, Powell press conference

Brent crude oil price news: Oil prices rose on Thursday on the prospect the US may start buying crude for its petroleum reserve, after prices sank to a seven-week low on hopes for an Israel-Gaza ceasefire, doubts about US interest rate cuts and swelling oil inventories.

Snapping three days of losses, Brent crude futures for July gained 21 cents, or 0.3 per cent, to $83.65 a barrel by 0026 GMT. US West Texas Intermediate (WTI) crude for June climbed 22 cents, or 0.3 per cent, to $79.22 a barrel.

Both benchmarks fell more than 3 per cent on Wednesday to a seven-week low. "The oil market was supported by speculation that if WTI falls below $79, the US will move to build up its strategic reserves," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

The US aims to replenish its Strategic Petroleum Reserve (SPR) after a historic sale from the emergency stockpile in 2022 and wants to buy back oil at $79 a barrel or less.

Both benchmarks fell more than 3 per cent on Wednesday to a seven-week low. "The oil market was supported by speculation that if WTI falls below $79, the US will move to build up its strategic reserves," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

The US aims to replenish its Strategic Petroleum Reserve (SPR) after a historic sale from the emergency stockpile in 2022 and wants to buy back oil at $79 a barrel or less.

The US Energy Information Administration (EIA) said crude inventories rose by 7.3 million barrels to 460.9 million barrels in the week ended April 26, compared with analysts' expectations in a Reuters poll for a 1.1 million-barrel draw.

Crude stocks were at the highest point since June, the EIA said. Meanwhile, the US Federal Reserve held interest rates steady on Wednesday and signalled it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings.

The Fed's latest policy statement did note that "inflation has eased". Any delay in rate cuts could slow economic growth and dampen demand for oil.

Brent crude oil price news:&nbsp;Oil prices rose on Thursday on the prospect the&nbsp;US&nbsp;may start buying crude for its petroleum reserve, after prices sank to a seven-week low on hopes for an Israel-Gaza ceasefire, doubts about&nbsp;US&nbsp;interest rate cuts and swelling oil inventories.


Oil prices pick up on prospect of US replenishing strategic reserve

Asia Markets News: Stocks got off to a shaky start on Thursday after the Federal Reserve flagged delays to interest rate cuts, while the dollar fell heavily on the yen in what traders reckoned was Japanese intervention.

Oil fell sharply overnight as the prospect of cuts seemed more distant and after a surprise jump in U.S. stockpiles, with Brent crude futures hitting a seven-week low of $83.44. [O/R]

Japan's Nikkei fell 0.7 per cent at the open and South Korean shares lost 0.5 per cent. Australian shares were flat. S&amp;P 500 futures rose 0.4 per cent after the cash index had closed 0.3 per cent lower overnight. [.N]

The dollar's value fell by almost five yen in 40 minutes of late New York trade to touch 153 yen. It was last at 155.63 yen, having traded around 157.5 before the sudden dive.

The move follows sharp yen gains on Monday which Japanese money market data suggested may have been intervention to the tune of some $35 billion in dollar selling. [FRX/]

"There was an intervention (by Japan)," said Thierry Wizman, global foreign exchange and rates strategist at Macquarie, of the most recent yen leap.

"They are trying to dissuade speculators from buying dollars and selling yen by making the experience painful for them."

Earlier the Federal Reserve had left interest rates on hold and chair Jerome Powell told reporters that inflation was too high and progress in bringing it down was uncertain.

"There are paths to not cutting and there are paths to cutting. It's really going to depend on the data," he said.

Treasuries rallied, pushing yields lower, as the Fed also said it would slow down its balance-sheet runoff.

Ten-year Treasury yields fell 9.3 basis points to 4.591 per cent in New York. Two-year Treasury yields fell 10.7 bps to 4.939 per cent. [US/]

"We think the market takeaway is that the (Fed) now wants to distance itself as far as possible from speculation that it might hike," said Steve Englander, Standard Chartered's head of G10 currency research and North America macro strategy, in a note.

After pricing in as many as six rate cuts for 2024 earlier this year, markets now price only one, in December.

Overnight chipmaker Qualcomm beat market expectations for sales and profit, sending its shares up 4 per cent in after-hours trading. Focus later on Thursday will be on Apple results, where markets have braced for a big drop in sales and are waiting to hear of the company's plans for AI in iPhones.

Much of Asia is returning from a holiday that had closed markets on Wednesday, though Chinese bond, currency and stock markets remain shut through the rest of the week.

In foreign exchange trade the yen's gains - and relief that the Fed is not talking about hikes - pushed the dollar lower.

Early in the Asia session the Australian dollar was 0.1 per cent higher at $0.6513.

The euro was steady at $1.0715.

Outside of oil the stronger dollar weighed on other commodities. Copper prices fell in London. Gold rose overnight and was last holding at $2,324 in Asia trade.

Asia Markets News:&nbsp;Oil fell sharply overnight as the prospect of cuts seemed more distant and after a surprise jump in U.S. stockpiles, with Brent crude futures hitting a seven-week low of $83.44.


Asia Markets News: Stocks wobble on rate cut delays; yen leaps

Consumer healthcare company Haleon reported first-quarter revenue slightly below market estimates on Wednesday, due to retailer destocking in the US&nbsp;and cooling demand for some of its medicines after a surge last year. The maker of popular household products such as Sensodyne toothpaste and pain-reliever Panadol, had earlier said that the first three months of 2024 would be impacted by a softer cold and flu season and a slowdown in painkiller Advil's sales in Canada, following a surge in demand last year.

Demand for medicines such as Contac and Fenbid, which benefited from pent-up demand in China last year after lockdown restrictions were lifted have also cooled, impacting Haleon's quarterly sales growth.

Revenues stood at 2.92 billion pounds ($3.64 billion) for the quarter ended March 31, slightly missing expectations of 2.93 billion pounds, according to a company-compiled consensus.

On a reported basis, revenue was down 2.2% on last year.

Shares in the FTSE 100 group fell 1.8% in early trading, to become one of the top losers on the blue-chip index. The stock has risen about 5% this year as of Tuesday's close.

Haleon, the world's biggest standalone consumer health company, comprising assets from GSK and Pfizer sells non-prescription drugs, vitamins and oral care products.

Demand for its oral health products and multivitamins held steady during the reported quarter, and the company re-affirmed its full-year outlook outlined in February.

The maker of popular household products such as Sensodyne toothpaste and pain-reliever Panadol, had earlier said that the first three months of 2024 would be impacted by a softer cold and flu season and a slowdown in painkiller Advil's sales in Canada, following a surge in demand last year.


Sensodyne-maker Haleon posts tepid sales as demand for some products cools off

Australia's food safety agency is collecting information on the possible contamination of spice mixes sold by Indian companies MDH and Everest to decide if a food recall is required, it said on Tuesday, the latest regulator to step up scrutiny. Hong Kong suspended sales this month of three MDH spice blends and an Everest mix for fish curry.

Singapore ordered a recall of the same Everest mix as well, flagging high levels of ethylene oxide, which is unfit for human consumption and a cancer risk over long exposure.

"We are working with international counterparts to understand the issue and with federal, state and territory food enforcement agencies to determine if further action is required in Australia," Food Standards Australia New Zealand said in a statement.

Such action could include a recall, it said, adding, "Ethylene oxide is not permitted to be used as a treatment for foods sold in Australia."

MDH and Everest did not immediately respond to Reuters' requests for comment. They have previously said their products are safe for consumption.

Their spice brands, among the most popular in India, are also sold in Europe, Asia and North America.

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The US Food and Drug Administration (FDA) said on Friday it is also gathering additional information on the matter, while Indian authorities have recently inspected the plants of MDH and Everest.

In 2019, a few batches of an MDH product were recalled in the U.S. for salmonella contamination.&nbsp;

In 2023, the FDA ordered a recall of two Everest spice mixes for the same contamination risk.

India is the biggest exporter, consumer and producer of spices in the world. MDH and Everest are among the biggest companies in India's spices market, which Zion Market Research estimates was worth $10.44 billion in 2022. The government says India exported products worth $4 billion during 2022-23.

India said last week it had sought data on MDH and Everest exports from authorities in Hong Kong and Singapore after the regulatory action.

On Tuesday, Hong Kong's Centre for Food Safety said in a statement the Indian embassy there has also been informed "of the test results for follow-up actions," without elaborating further.

"We are working with international counterparts to understand the issue and with federal, state and territory food enforcement agencies to determine if further action is required in Australia," Food Standards Australia New Zealand said in a statement.


Australian regulator examines possible contamination of Indian spice mixes

U.S. central bank officials will conclude their latest two-day policy meeting on Wednesday with a new statement and comments from Federal Reserve Chair Jerome Powell that could give a clearer sense of how recent disappointing inflation readings have changed the expectation for interest rate cuts this year.

The Fed is almost certain to hold its benchmark overnight interest rate steady, with investors placing nearly a 100 per cent&nbsp;probability on that outcome and no support for any changes to the policy rate offered by officials ahead of the meeting.

But a new policy statement issued at 2 p.m. EDT (1800 GMT) and Powell's press conference half an hour later should provide insight into how deeply – if at all – a stretch of three lost months in the inflation battle has affected the likelihood that borrowing costs will fall any time soon.

Fed policymakers will not be updating their quarterly economic projections at this week's meeting, so any fresh guidance rests on the statement and Powell's press conference.

The Fed made significant headway in lowering inflation back to its 2 per cent&nbsp;target after it had surged to a 40-year high in 2022.

But progress has stalled this year, and even threatened to reverse, pushing central bank officials to downplay when rate cuts might begin.

As the latest Fed meeting began on Tuesday, two sets of data further undermined the outlook.

The Employment Cost Index (ECI), an important measure of labor market conditions because it is measured quarterly and accounts for changes in the mix of occupations, rose at a 4.2 per cent&nbsp;rate on a year-over-year basis in the first quarter, matching the rise in the fourth quarter and above what's considered consistent with the Fed's inflation target.

Two national measures of home prices also showed unexpected strength, a blow to longstanding Fed hopes that shelter inflation would ease and help lower the headline inflation rate.

"Recent data has not been what the Fed is looking for," said Tuan Nguyen, a U.S. economist at RSM, with the ECI in particular perhaps steering policymakers towards a more hawkish view of recent data they still hope will prove a bump on the way to lower inflation as opposed to a sign that progress is stalling.

Investors in contracts tied to the Fed's policy rate responded to the data by further pushing out their expectations of when it might fall, according to data from CME Group's FedWatch Tool, with an initial quarter-percentage-point reduction at the central bank's Sept. 17-18 meeting given about even odds as of Tuesday.

The likelihood that the benchmark rate won't be cut at all from the current 5.25 per cent to 5.50 per cent&nbsp;range this year was roughly one in four - up from close to zero as of early April.

The Fed last raised rates in July, and while officials have said they'd be unlikely to hike again, Powell's assessment of that issue at his press conference will be important - even if it is only to restate that the expectation is to simply leave the current policy rate in place for longer than anticipated.

"The recent data have clearly not given us greater confidence and instead indicate that it's likely to take longer than expected to achieve that confidence" and proceed with rate cuts, Powell said on April 16 in what were his last public comments before this week's meeting. "Right now, given the strength of the labor market and progress on inflation so far, it's appropriate to allow restrictive policy further time to work."

Catch the latest <a href="https://www.zeebiz.com/markets/stocks/news-labour-day-maharashtra-stock-market-holiday-today-2024-nse-bse-closed-mcx-latest-news-287450">stock market</a> updates here. For all other news related to business, politics, tech and auto, visit <a href="https://www.zeebiz.com/">Zeebiz.com</a>.

The Fed is almost certain to hold its benchmark overnight interest rate steady, with investors placing nearly a 100 per cent&nbsp;probability on that outcome and no support for any changes to the policy rate offered by officials ahead of the meeting.


Fed to hold rates steady as inflation dims hopes for policy easing

Amazon&nbsp;quarterly results: Amazon&nbsp;reported quarterly results above Wall Street's expectations on Tuesday, as interest in artificial intelligence helped drive cloud-computing growth. CEO Andy Jassy told analysts that for Amazon "there is a big opportunity in front of us" in servicing AI customers.

Shares of the Seattle-based e-commerce and tech company climbed less than 2 per cent in extended trade after its current-quarter revenue forecast came in below expectations. The stock closed down 3.3 per cent in the regular session.

Chief Financial Officer Brian Olsavsky told reporters on a call that capital spending would increase throughout the year, compared with $14 billion in the first quarter. "That will be the low point for the year as far as capex by quarter," he said.

"The majority of that will be to support AWS infrastructure and in particular generative AI efforts," he said later on a call with analysts. Amazon is investing upfront to build out its AI offerings to meet customer demand, particularly as customers seek out longer-term contracts, he said.

Amazon is racing to keep abreast of rivals in offering generative AI software. Competitors include Alphabet (GOOGL.O) as well as Microsoft-backed (MSFT.O) OpenAI.

First-quarter sales increased 13 per cent to $143.3 billion, higher than the $142.5 billion average, according to LSEG data. Net income more than tripled to $10.4 billion in the first quarter. 
The company expects revenue of $144.0 billion to $149.0 billion for the current quarter ending June, compared with analyst consensus expectations of $150.07 billion, according to LSEG data.

"After a year and a half of cutting cloud costs, it appears that enterprise customers are ready to move more workflows to the cloud again, which is positive not just for Amazon, but also for many software companies that sell to enterprise customers," said D.A. Davidson analyst Gil Luria.

Amazon Web Services (AWS), the largest provider of cloud-computing services, posted a 17 per cent rise in revenue to $25.0 billion in the first quarter, compared with expectations of $24.53 billion.

That compares with a rise in cloud-computing revenue of 31 per cent for Microsoft and 28 per cent for Alphabet for the January-to-March period. AI has been a fixation in Silicon Valley since OpenAI’s ChatGPT debuted in late 2022, fueling billions in funding and a mad dash to put chatbots and other artificially intelligent features into more products. On Tuesday, Amazon said its "Q" chatbot for businesses was publicly available and earlier this year it rolled out the Rufus service to help customers on its website find new products.

Jassy in a statement said AWS is now on pace to achieve $100 billion in annual sales. Amazon bucked a Big Tech trend of announcing a dividend, after rivals Alphabet and Meta Platforms (META.O) rolled out the investor goodie. The latter two announcements were cheered by investors who pushed the stock prices higher.

Amazon and Tesla (TSLA.O) remain the only members of the so-called Magnificent Seven tech stocks that do not offer dividends. Its shares have climbed about 15 per cent in 2024, outperforming the S&amp;P 500's (.SPX) gain of about 6 per cent.

Net income of $10.4 billion, or 98 cents per diluted share, compared with $3.2 billion, or 31 cents per diluted share in 2023's first quarter. That beat analysts' average EPS estimate of 83 cents. Amazon's push to build out its advertising business helped results in the quarter. The company took in $11.8 billion in ad sales, up 24 per cent from a year earlier. The company this year added unskippable ads to its Prime Video streaming offering, which Jassy said marketers are excited about. Customers can opt out for $2.99 per month.

The company ended the quarter with 1.52 million employees, about 4,000 fewer than at year-end 2023, but higher than a year earlier by 56,000. That was despite Amazon cutting at least 27,000 jobs last year and continuing to trim positions across a number of units.

Amazon&nbsp;quarterly results:&nbsp;Amazon&nbsp;reported quarterly results above Wall Street's expectations on Tuesday, as interest in artificial intelligence helped drive cloud-computing growth.
CEO Andy Jassy told analysts that for Amazon "there is a big opportunity in front of us" in servicing AI customers.


Amazon results beat estimates, revenue forecast misses

US stock market: US stocks ended lower on Tuesday as markets weighed economic data showing rising labor costs and deteriorating consumer confidence on the day of a key Federal Reserve policy meeting to decide the direction of interest rates.

Data showed on Tuesday that US labor costs rose by a more-than-expected 1.2 per cent last quarter, indicating an uptick in wage pressures. A survey also found that US consumer confidence worsened in April, dropping to its lowest level in more than 1-1/2 years.

The reports came a day before the Federal Reserve Open Market Committee (FOMC) ends its two-day meeting, with investors widely expecting the central bank to leave interest rates unchanged. 
Most Magnificent Seven stocks finished lower, including Tesla (TSLA.O), Alphabet (GOOGL.O), Nvidia (NVDA.O), Microsoft (MSFT.O), and Amazon (AMZN.O).

"We're still in an environment where the knee-jerk reaction is to extrapolate any warmer data into firmer inflation and more hawkish reaction from the Fed," said Garrett Melson, portfolio strategist at Natixis Investment Managers in Boston.

"But nothing has changed: growth is still strong, labor markets are holding up, and ultimately we're taking a little bit of breather in the disinflation process," Melson added.

Money markets are pricing in just about 31 basis points (bps) of rate cuts this year, down from about 150 bps estimated at the start of 2024, according to LSEG data.

According to preliminary data, the S&amp;P 500 (.SPX) lost 79.92 points, or 1.56 per cent, to end at 5,036.25 points, while the Nasdaq Composite (.IXIC) lost 325.26 points, or 2.00 per cent, to 15,664.13. The Dow Jones Industrial Average (.DJI) fell 574.08 points, or 1.47 per cent, to 37,823.57.

Shares of GE HealthCare(GEHC.O) shrank after its first-quarter revenue missed analyst estimates, 3M (MMM.N) gained after posting a better-than-expected quarterly profit.

Drugmaker Eli Lilly (LLY.N) jumped after it raised its full-year profit forecast. PayPal(PYPL.O) rose after raising its full-year adjusted profit forecast.

Of the 265 companies in the S&amp;P 500 that have reported earnings to date for the first quarter, 79.2 per cent have beat analyst estimates, compared with the long-term average of 67 per cent, according to LSEG I/B/E/S data.

US stock market:&nbsp;US&nbsp;stocks ended lower on Tuesday as markets weighed economic data showing rising labor costs and deteriorating consumer confidence on the day of a key Federal Reserve policy meeting to decide the direction of interest rates.


US stock market: Wall Street stocks fall as markets weigh strong wage data, Fed meeting

US equity markets closed sharply lower on Tuesday, joining their global counterparts in the monthly loss column as investors await crucial economic data and the Federal Reserve convenes for its two-day policy meeting.

Gold sank, the dollar rebounded and benchmark US Treasury yields ticked higher after the US Labor Department reported hotter-than-expected first-quarter employment cost growth, which is unlikely to alter the Fed's restrictive stance.

"The sell-off was triggered by the higher-than-expected employment cost index," said Jay Hatfield, portfolio manager at InfraCap in New York. "And investors are positioning ahead of what is likely to be a hawkish press conference following the Fed meeting." 
All three major US indexes recorded their first monthly percentage losses since October.

"We have reached new highs in the S&amp;P this year, but there comes a time when a market needs to digest those gains," said Sam Stovall, chief investment strategist of CFRA Research in New York. "The old 'sell in May' adage might have come true a month early."

The Federal Reserve Open Market Committee gathers on Tuesday for its monetary policy meeting, which is expected to culminate on Wednesday with a decision to leave the Fed funds target rate in the 5.25 per cent to 5.50 per cent range.

The accompanying statement, as well as Fed Chair Jerome Powell's subsequent press conference, will be parsed for clues regarding the central bank's expected path forward with respect to interest rate cuts.

"We know the Fed is going to be hawkish, and there's going to be questions about rate increases," Hatfield added. "That will be the money answer, depending how much he pushes back on that." 
First-quarter earnings season has passed its halfway point, with a host of high-profile results on tap this week, among them Amazon.com, opens new tab and Apple Inc.

Analysts now see aggregate S&amp;P 500 first-quarter earnings growth of 6.0 per cent year-on-year, up from the 5.1 per cent estimate as of April 1, LSEG data showed.

The Dow Jones Industrial Average fell 570.17 points, or 1.49 per cent, to 37,815.92. The S&amp;P 500 lost 80.49 points, or 1.57 per cent, at 5,035.68 and the Nasdaq Composite dropped 325.26 points, or 2.04 per cent, to 15,657.82.

European stocks ended lower as a raft of bleak earnings dampened investor sentiment due to upbeat economic data and the increased likelihood that the European Central Bank could cut interest rates in June.

The pan-European STOXX 600 index lost 0.68 per cent and MSCI's gauge of stocks across the globe shed 1.23 per cent.

Emerging market stocks lost 0.61 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.41 per cent lower, while Japan's Nikkei rose 1.24 per cent.

The dollar, boosted by economic data, regained some strength against a basket of world currencies and the yen weakened against the greenback, paring gains in the aftermath of suspected currency intervention on the part of Japanese authorities on Monday. 
The dollar index rose 0.62 per cent, with the euro down 0.43 per cent to $1.0673. 
The Japanese yen weakened 0.89 per cent versus the greenback at 157.75 per dollar, while sterling was last trading at $1.2497, down 0.51 per cent on the day.

US Treasury yields rose after the hotter-than-expected employment costs report as investors awaited the Fed decision. 
Benchmark 10-year notes fell 19/32 in price to yield 4.6902 per cent, from 4.612 per cent late on Monday.

The 30-year bond fell 28/32 in price to yield 4.7945 per cent, from 4.737 per cent late on Monday.

Crude prices dropped on easing geopolitical tensions as Israel-Hamas peace talks moved forward and US data showed healthy crude output and exports.

US crude dropped 0.85 per cent to settle at $81.93 per barrel, while Brent settled at $87.86 per barrel, down 0.61 per cent on the day. 
Gold prices tumbled to a one-week low ahead of the Fed meeting, but remained on course for their third consecutive monthly gain. 
Spot gold dropped 1.8 per cent to $2,292.60 an ounce.

Gold sank, the dollar rebounded and benchmark&nbsp;US&nbsp;Treasury yields ticked higher after the&nbsp;US&nbsp;Labor Department reported hotter-than-expected first-quarter employment cost growth, which is unlikely to alter the Fed's restrictive stance.


Stocks notch monthly drop, dollar rebounds as data, Fed loom large

Brent crude oil price news:&nbsp;Oil prices fell for a third day on Wednesday on rising crude inventories and production in the US, the world's biggest oil consumer, along with increasing hopes of a ceasefire agreement in the Middle East.

Brent crude futures for July fell 47 cents, or 0.5 per cent, at $85.86 a barrel by 0005 GMT. US West Texas Intermediate crude for June declined 53 cents, or 0.6 per cent, to $81.40 per barrel.

US crude oil inventories swelled last week by 4.906 million barrels, while gasoline and distillate stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday.

Gasoline inventories fell by 1.483 million barrels, and distillates fell by 2.187 million barrels. Official data from the EIA is due at 10:30 a.m. EDT (1430 GMT).

US crude supply is also showing signs of ramping up, with production rising to 13.15 million barrels per day (bpd) in February from 12.58 million bpd in January in its biggest monthly increase in about 3-1/2 years, the Energy Information Administration said on Tuesday.

Expectations that a ceasefire agreement between Israel and Hamas could be in sight, following a renewed push led by Egypt to revive stalled negotiations between the two, pushed oil prices lower. An end to the war would reduce concerns of a broadening of the conflict that could disrupt supply from the Middle East.

Keeping oil from slipping further, output by the Organization of the Petroleum Exporting Countries (OPEC) was seen falling by 100,000 bpd in April to 26.49 million bpd, a Reuters survey found on Tuesday, reflecting lower exports from Iran, Iraq and Nigeria against a backdrop of ongoing voluntary supply cuts by some members agreed with the wider OPEC+ alliance.

Brent crude oil price news:&nbsp;Oil prices fell for a third day on Wednesday on rising crude inventories and production in the&nbsp;US, the world's biggest oil consumer, along with increasing hopes of a ceasefire agreement in the Middle East.


Oil falls for a third day as US crude inventories swell

Elon Musk's surprise visit to China this week won concessions for Tesla but left India feeling spurned after he cancelled a scheduled trip there for earlier this month, with Indian commentators calling the move a snub.

India's pained reaction highlights the increasing rivalry between India and China, Asia two largest countries by population and among the region's most dynamic economies. Business and diplomatic relations between them have been strained since a 2020 border clash left 20 Indian and four Chinese soldiers dead.

Musk was due to meet Modi last week and announce an investment of up to $3 billion in a car plant, but cancelled saying there were "very heavy Tesla obligations". By then, the Indian government had sent out invites for a startup event Musk was to attend.

On Sunday, Musk turned up in China, meeting with Premier Li Qiang and making progress towards rolling out its advanced driver assistance package in the world's biggest auto market.

Indian news channels that often take a hard line position against China blasted Musk's trip.

The Mirror Now news channel ran a prime time news segment with a tagline "Shoddy ethics or simply business?", with the anchor saying "here in India everybody was shocked."

Digital news service News9 ran a segment late on Monday on Musk, saying "Hello China, Goodbye India?". It then flashed on the screen, "VERY HEAVY TESLA OBLIGATIONS? China visit a week after cancelling India".

Neither Tesla or Modi's office responded to requests for comment. Musk said on April 20 he looks forward to visiting India later this year, but the Indian government has not commented on his trip cancellation or China visit.

Musk's India trip could have boosted Modi's re-election campaign, with a Tesla investment announcement during poll campaigning providing an endorsement of Modi's business friendly image as he seeks a rare third term.

Modi's government has been trying to court foreign companies to India as they diversify their supply chains beyond China because of geopolitical tensions between Beijing and Washington.

Modi's opponents seized on Musk's China visit to criticise the prime minister.

"Such is the lack of faith in the Modi govt's regulatory policies, that big businesses are turning to China over India repeatedly," Shama Mohamed, the national spokesperson of main opposition Congress party wrote on social media website X.

Political satirist Akash Banerjee, who runs a YouTube channel "The Patriot", questioned how Musk had no time to meet Modi, but still went to China.

"Do you think Modi will forgive Musk from his heart?" Banerjee said in a video that has clocked 268,000 views in 19 hours.

Musk was due to meet Modi last week and announce an investment of up to $3 billion in a car plant, but cancelled saying there were "very heavy Tesla obligations". By then, the Indian government had sent out invites for a startup event Musk was to attend.


India 'shocked' as Musk's surprise China visit leaves them spurned

China&nbsp;April factory activity news: China's manufacturing and services activity both expanded at a slower pace in April, official surveys showed on Tuesday, suggesting some loss of momentum for the world's second-biggest economy at the start of the second quarter.

The survey outcomes underline the challenges facing policymakers even though solid first quarter GDP growth has reduced some of the urgency to ramp up stimulus measures. The National Bureau of Statistics (NBS) manufacturing purchasing managers' index (PMI) dropped to 50.4 in April from 50.8 in March, above the 50-mark separating growth from contraction and just ahead of a median forecast of 50.3 in a Reuters poll.

New export orders grew at a much slower rate, while employment continued to shrink, the NBS data showed. The services sub-index under the NBS non-manufacturing survey grew at the slowest pace since January, coming in at 50.3 in April compared with 52.4 in March.

"Indicators of business activity in the catering, capital market services and property industries were in contraction," the NBS said in a statement.

Another private Caixin factory survey, also released on Tuesday, showed manufacturing activity grew more quickly as new export orders rose. Analysts say the divergence between the Caixin PMI and the official PMI highlights differences in their geographic and sector coverage.

"Both of the manufacturing and services PMI indexes are near the line of 50, reflecting that the current momentum of economic expansion is mild," said Zhou Maohua, a macroeconomic researcher at China Everbright Bank.

Investors expect Chinese authorities to launch more stimulus to support the economy and are waiting for clues from the monthly Politburo meeting, which is expected to focus on economic affairs.

With the US Federal Reserve and other developed economies in no hurry to cut interest rates, China may face a longer period of tepid external demand. Adding to the challenges, Beijing continues to contend with trade barriers as the US accuses China of exporting its industrial overcapacity.

Officials this year underscored the need for economic development based on innovation in advanced sectors. However, analysts said the country's immediate problem centres around a prolonged property downturn and ballooning local government debt, which have dented household and investor confidence in a blow to the economic outlook.

While stronger-than-expected first quarter economic growth provided a welcome impetus for the rest of the year, weakness in key areas such as March retail sales, industrial profits and property investment underline the challenge for China in sparking a broad revival in demand. China has set a GDP growth target of around 5.0 per cent for 2024, a goal analysts have described as ambitious.

China&nbsp;April factory activity news: China's manufacturing and services activity both expanded at a slower pace in April, official surveys showed on Tuesday, suggesting some loss of momentum for the world's second-biggest economy at the start of the second quarter.


China's April factory activity grows at slower pace

Japan March factory output: Japan's factory output grew more than expected in March, government data showed on Tuesday, thanks largely to automakers resuming production after safety scandals. Industrial production rose 3.8 per cent in March from the previous month, the Ministry of Economy, Trade and Industry (METI) showed, better than the median market forecast for a 3.5 per cent rise.

"Coupled with solid output forecasts for April and May, the strong rebound in industrial production in March suggests that the likely slump in GDP in Q1 should be followed by a strong rebound this quarter," said Gabriel Ng, assistant economist at Capital Economics.

Motor vehicle production rose 9.6 per cent in March from the previous month. Output in regular passenger cars and regular trucks boosted the overall figures. Japanese automaker Toyota Motor (7203.T) restarted production of some models in early March after irregularities in certification tests were found in affiliate Toyota Industries' (6201.T) diesel engines.

Toyota's small-car unit Daihatsu, which was mired by misconduct related to rigged collision-safety tests, has gradually resumed vehicle production from February onwards.

"We'll continue to monitor the global economy and the resumption of plant operations by the automobile industry," a METI official said. The manufacturing of production machinery, including semiconductor production equipment, went up 11.6 per cent. Electronic parts and device output increased 9.2 per cent, according to METI.

Manufacturers surveyed by the industry ministry expect seasonally adjusted output to increase 4.1 per cent in April and expand 4.4 per cent in May. However, the METI official said a prolonged production disruption at Toyota's domestic plant over quality checks for Prius cars could put downward pressure on factory output in April.

Separate data showed Japanese retail sales expanded 1.2 per cent in March from a year earlier. The result was below the median market forecast for a 2.2 per cent rise but marked the 25th consecutive month of expansion. Compared with the previous month, retail sales shrank 1.2 per cent in March, following a 1.7 per cent gain in February, the data showed.

Japan March factory output:&nbsp;Japan's factory output grew more than expected in March, government data showed on Tuesday, thanks largely to automakers resuming production after safety scandals.&nbsp;


Japan March factory output rises as vehicle production recovers

Asian Markets News: Stocks inched higher on Tuesday as investors awaited a slew of economic data, corporate earnings and the U.S. Federal Reserve's policy meeting, while the yen was slightly weaker a day after suspected intervention rescued it from 34-year lows.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.36 per cent higher, set to clock in a nearly 1 per cent gain for the month, its third straight month of gains. Nikkei rose 1 per cent as Japan reopened after a holiday on Monday.

China stocks were mixed in early trading with the blue-chip index easing 0.07 per cent, while Hong Kong's Hang Seng index was up 0.5 per cent.

This week's data releases include European inflation and U.S. labour market reports, while the Fed is due to convene on Tuesday for its two-day meeting at which it is expected to stand pat on interest rates but strike a hawkish tone.

The spotlight remains on the yen after a volatile start to the week as the Japanese currency surged to 154.40 per dollar on Monday from a fresh 34-year low of 160.245, with traders citing yen-buying intervention by authorities.

Markets had been anticipating that Japan might intervene to prop up the yen after the currency fell more than 10 per cent against the dollar this year.

On Tuesday, the yen weakened 0.38 per cent to 156.92 per dollar in early trading.

Japan's top currency diplomat Masato Kanda said on Tuesday that authorities were ready to deal with foreign exchange matters "24 hours", while declining again to comment on whether the finance ministry had intervened to prop up the yen a day earlier.

"Whether it's London, New York or Wellington (hours), it doesn't make a difference," the vice finance minister for international affairs told reporters.

Vasu Menon, managing director of investment strategy at OCBC, said intervention alone cannot alter the wide gulf in interest rates that's in part driving the yen's decline.

The yen has been under pressure as U.S. interest rates have climbed and Japan's have stayed near zero, driving cash out of yen and into higher-yielding assets.

"A lot now hinges on the outcome of the Fed policy meeting this week," said Menon.

"Markets will be waiting with bated breath to see if the Fed turns more hawkish, which will support the U.S. dollar and undermine the appeal of the yen. If the Fed does not sound as hawkish as markets fear, this could help the yen to strengthen."

Investors have continually had to dial back expectations for the timing and magnitude of U.S. rate cuts this year after hotter-than-expected inflation reports, with markets pricing in a 57 per cent chance of a rate cut in September, CME FedWatch Tool showed.

Traders are now pricing in 35 basis points of cuts in 2024, drastically lower than the 150 bps of easing priced at the start of the year.

The shifting expectations on U.S. rates have lifted Treasury yields and the dollar, dominating the currency market. Against a basket of currencies, the dollar was little changed at 105.73. The index is up over 1 per cent in April and over 4 per cent for the year.

Meanwhile, earnings season heats up this week with high profile results from Amazon.com and Apple.

Overnight, U.S. stocks ended higher, led by sharp gains in Tesla shares after the electric vehicle maker made progress in securing regulatory approval to launch its advanced driver-assistance program in China.

U.S. crude fell 0.18 per cent to $82.48 per barrel and Brent was at $88.31, down 0.1 per cent on the day. [O/R]

Spot gold was flat at $2,334.79 per ounce. [GOL/]

Asian Markets News:&nbsp;MSCI's broadest index of Asia-Pacific shares outside Japan was 0.36% higher, set to clock in a nearly 1% gain for the month, its third straight month of gains.


Reuters