World stocks mixed as investors wait for Fed

June 17, 2014
World stocks mixed as investors wait for Fed

People walk by an electronic stock board of a securities firm in Tokyo, Tuesday, June 17, 2014. Asian stocks were mixed on Tuesday as investors remained cautious ahead of a meeting by the Federal Reserve that’s expected to give an update on forecasts for the world’s No. 1 economy. (AP Photo/Koji Sasahara)

HONG KONG (AP) -- World stock markets were mixed Tuesday as investors remained cautious ahead of a U.S. Federal Reserve meeting that's expected to update forecasts for the world's No. 1 economy.

The economic growth outlook for the U.S. became cloudier after the International Monetary Fund lowered its forecast for 2014 growth to a modest 2 percent from 2.7 percent previously. The Fed's Open Market Committee is expected to follow suit and adjust its projections following the meeting, which concludes on Wednesday, after recent data showed that economy shrank in the first quarter because of a severe winter, while the unemployment rate has improved and inflation has picked up.

"These developments should lead to substantial revisions of the economic projections of FOMC participants," Rabobank strategists said in a report.

In early European trading, Germany's DAX rose 0.8 percent to 9,966.71 while France's CAC 40 climbed 0.5 percent to 4,533.99. The FTSE 100 index of leading British companies advanced 0.3 percent to 6,772.01.

U.S. stocks were poised to open higher. Dow futures gained 0.3 percent to 16,756.00 while broader S&P 500 futures rose 0.3 percent to 1,934.70.

Asian markets were more restrained. Investors in the region were taking a "wait-and-see mode," Credit Agricole CIB strategists said.

Japan's benchmark Nikkei 225 rose 0.3 percent to close at 14,975.97, rebounding from a sharp 1.1 percent drop the day before as the dollar strengthened 0.2 percent to 102.02 Japanese yen.

South Korea's Kospi added 0.4 percent to end at 2,001.55 while Hong Kong's Hang Seng shed 0.4 percent to 23,203.59. In mainland China, the Shanghai Composite Index lost 0.8 percent to 2,066.70. Australia's S&P/ASX 200 slipped 0.2 percent to 5,400.70.

In energy trading, benchmark crude oil for July delivery fell 59 cents to $106.31 in electronic trading on the New York Mercantile Exchange. The contract fell 1 cent to $106.90 on Monday.

The euro edged higher to $1.3573 from $1.3572 in late trading Monday.