HONG KONG, Dec 17: Most markets fell Tuesday as attention turned to the Federal Reserve's upcoming policy decision, with traders hoping for guidance on its interest rate plans as president-elect Donald Trump prepares to take office.
The decision, which is expected to see officials lower borrowing costs again, comes in a busy week for central banks, with announcements in Japan and Britain also due.
Investors are keeping tabs on Beijing after Chinese leaders' latest measures to kickstart the economy fell short of expectations, with weak retail sales data Monday reinforcing the need for more support.
The Fed is widely expected to lower rates for the third meeting in a row Wednesday as it looks to guide the world's top economy to a soft landing, though its statement will be pored over for clues about next year's outlook.
Investors have started paring their bets on how many times it will cut over the next 12 months owing to still-sticky inflation, a strong labour market and uncertainty about Trump, who has pledged to slash taxes and impose tariffs on imports.
Stefan Hofrichter, head of global economics and strategy at Allianz GI, said the US economy had defied warnings of a recession and growth was expected to power ahead, adding the firm's "base case scenario remains a 'soft landing' for the US and world economies". However, he added: "The wild card is what happens after Donald Trump takes office as US president. The lavish spending he's proposed could boost US growth in the short term. —AFP
