Global stocks edged lower Wednesday as the possibility of higher U.S. interest rates quelled investors’ appetite for risk.
The Stoxx Europe 600 inched down 0.3% in morning trade, following losses on Wall Street and in Asia.
Futures pointed to a small opening loss for the S&P 500. Changes in futures don’t necessarily reflect market moves after the opening bell.
Minutes from the Fed’s April policy meeting, due later Wednesday, could offer insight into the possibility of a U.S. interest rate increase in June.
Upbeat U.S. inflation and industrial production data, as well as speeches from Federal Reserve officials including Atlanta Fed President Dennis Lockhart and Dallas Fed President Robert Kaplan on Tuesday, raised market expectations for interest rate rises this year, weighing on stocks while boosting the dollar.
“I think that the data to my mind are lining up to make a good case for rate increases in the next few meetings, not just June, which means it’s very live in terms of that,” San Francisco Fed President John Williams said in an interview with The Wall Street Journal.