European markets trade flat as investors prepare for the latest Federal Reserve meeting to conclude, with anticipation growing that policymakers will signal a readiness to lower rates.
Contracts for the three main US gauges traded little changed while declines in real estate shares helped drag the Stoxx Europe 600 lower. Shares rose in Asia following the rally on Wall Street a day earlier, which was boosted when President Donald Trump tweeted he will sit down with Chinese President Xi Jinping at the G-20 summit next week. Hong Kong’s shares led the region, advancing 2.6%. The yield on 10-year Treasuries rose toward 2.08%, while that of Japan’s benchmark hit a three-year low. The pound gained for a second day.
As many of the world’s biggest central banks signal a shift to easier policy, traders are weighing that against trade war fears and signs of cooling global growth. Trump said Tuesday that he had a “very good” phone conversation with Xi. The two leaders will hold an “extended meeting” at the G-20 summit on June 28-29 in Osaka and “our respective teams will begin talks prior to our meeting,” Trump said on Twitter.
Elsewhere, West Texas crude stabilized after OPEC and its allies agreed to hold the next meeting to discuss oil-output cuts on July 1-2, resolving a monthlong dispute that highlighted divisions within the group. The Turkish lira fell on a report the Trump administration is weighing new sanctions on the country over its purchases of the Russian S-400 missile-defence system.