World Markets Mixed Ahead Of Fed Rates Decision

World stock markets were mixed on Monday ahead of what is expected to be a Federal Reserve decision this week to raise interest rates again amid investor hopes the US central bank will scale back plans for more increases.

Germany's DAX gained 0.2 per cent to 13,269.55 and Britain's FTSE 100 was flat at 7,049.25.

In Paris, the CAC 40 lost 0.2 per cent to 6,262.91. The future for the S and P 500 shed 0.6 per cent while that for the Dow industrials was 0.5 per cent lower.

Wall Street ended last week higher after Apple and other big companies reported strong profits and a closely watched measure of inflation accelerated in September.

The Fed is widely expected at this week's meeting to announce another rate hike of 0.75 percentage points, three times its usual margin.

Investors are looking for signs officials are satisfied that earlier increases imposed to cool inflation that is near a four-decade high are working and future increases can be smaller.

Investors worry rate hikes by the Fed and other central banks to cool inflation might tip the global economy into recession.

The US central bank has raised its benchmark lending rate to a range of 3per cent to 3.25 per cent from close to zero in March.

“The tone from Fed Chair Jerome Powell will be important” after this week's meeting, said Yeap Jun Rong of IG in a report. 

Investors are looking for “increased concerns on economic conditions” instead of the “current head-on resolve to tame inflation.”

In Asian trading, the Nikkei 225 in Tokyo gained 1.8 per cent to 27,587.46, as the government reported that retail sales rose in September, though industrial production weakened.

The Shanghai Composite Index shed 0.8 per cent to 2,893.48 after a manufacturing survey showed a weakening in production and demand. Hong Kong's Hang Seng dropped 1.2 per cent to 14,687.02.

The Kospi in Seoul added 1.1 per cent to 2,293.61 and Sydney's S and P-ASX 200 gained 1.2 per cent to 6,863.50.

On Wall Street, the benchmark S and P 500 index rose 2.5 per cent on Friday after US government data showed consumer prices rose 6.2per cent over a year earlier September, the same as the previous month's rate.

The Dow Jones Industrial Average rose 2.6 per cent and the Nasdaq composite climbed 2.9 per cent.

Core inflation, which removes volatile food and energy prices to show the underlying trend, accelerated to 5.1 per cent from August's 4.9 per cent.

Powell and other Fed officials have said they are ready to keep interest rates elevated until they are sure inflation is extinguished.

Also Friday, government data showed wage increases for American workers were in line with expectations. Powell has cited wages as one measure the Fed is watching as it decides whether to raise rates.

In energy markets on Monday, benchmark US crude lost 66 cents to USD 87.24 per barrel in electronic trading on the New York Mercantile Exchange.

The contract fell USD 1.18 to USD 87.90 on Friday. Brent crude, used to price international oils, retreated 65 cents to USD 93.12 per barrel in London. It declined USD 1.19 on Friday to USD 95.77.

The dollar rose to 148.27 yen from Friday's 147.53 yen. The euro edged down to 99.35 cents from 99.55 cents.