Global Stocks Slip Ahead of Fed Decision

By Lauren Almeida 

-- Asian stocks drop, European shares waver

-- Crude prices tick higher

-- U.S. Treasury yields down

European stocks wavered between small gains and losses after a broad move down in Asia, ahead of a Federal Reserve policy decision Wednesday when the central bank is expected to cut interest rates.

The Stoxx Europe 600 was up 0.1%, with gains in construction largely offset by losses in the real estate and utilities sectors.

Shares of Next, the British clothing company, notched one of the biggest rises at 8.8% after it raised its forecast for profit and sales.

Glanbia PLC, an Irish food-nutrition firm, fell 14% after it issued a profit warning for 2019 and posted lower first-half earnings.

Asian stocks were rattled after tweets from President Trump Tuesday dampened expectations for a breakthrough in U.S.-China trade talks. Hong Kong's Hang Seng was down by 1.3% and the Shanghai Composite Index fell by 0.7%.

Shares of Chinese property developers fell after the country's top leadership vowed not to use the real-estate market as a tool to arrest an economic slowdown. At a meeting Tuesday, the Communist Party's top decision-making body reiterated that housing is "used for living, not for speculation," adding it "will not use real estate as a short-term means of stimulating the economy."

In the U.S., the yield on the 10-year Treasurys fell to 2.050% from 2.063% Tuesday. Yields fall when bond prices rise. The WSJ Dollar Index, which measures the currency against a basket of peers, was flat.

On the earnings front, General Electric and Qualcomm are among the large companies due to report Wednesday.

European data on second-quarter gross domestic product and inflation are also due Wednesday.

Global oil benchmark Brent crude was up 0.7% at $65.09 a barrel, amid continued tensions in the Middle East and expectations of lower interest rates in the U.S. Gold edged up 0.1%.

Shen Hong contributed to this article.

Write to Lauren Almeida at [e-mail]

(END) Dow Jones Newswires

July 31, 2019 05:03 ET (09:03 GMT)

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