China and Hong Kong stocks end mixed as investors await outcome of Federal Reserve meeting
- Investors also await bigger breakthrough from trade dialogue between US and Chinese officials
Chinese stocks fell on Wednesday while Hong Kong stocks ended the day flat, as investors awaited the outcome of the US Federal Reserve meeting and brushed aside a meeting between US and Chinese officials to de-escalate the trade war.
The Shanghai Composite Index fell 1 per cent, or 27.09 points, to 2,549.56. The Shenzhen Component Index lost 1.5 per cent, or 111.63 points to 7,418.69.
The CSI 300 Index of big caps listed on both Shanghai and Shenzhen stock exchanges, shed 1.2 per cent, or 37.3 points to 3,091.13.
Fed chairman Jerome Powell will give his outlook for the US economy and the interest rate path for 2019 tonight. Market observers expect a 25 basis point increase in interest rates.
On Wednesday, China’s Ministry of Commerce said that talks were held at the vice-ministerial level with US officials to de-escalate the trade war as part of the 90-day truce that started on December 1.
The development came after US Treasury Secretary Steven Mnuchin said negotiators charged with hammering out a broader truce in the China-US trade war will meet in January.