Stocks and oil edge higher as investors eye US Fed meeting

New York — Global equity markets edged higher on Wednesday after a three-day sell-off, which had investors seeking safety in bonds due to mounting pessimism over world economic growth.

Crude oil futures have plummeted almost 10% since last Thursday while world stock markets have tumbled to 19-month lows.

Investors expect the US Federal Reserve to announce one more interest rate hike at a policy meeting later in the day, but speculate that the US central bank might signal that it plans to stop tightening monetary policy.

“Financial market volatility, falling inflation expectations, and pockets of slowing growth will likely combine to produce a dovish hike in December,” BNP Paribas told clients.

MSCI’s index of stocks around the globe rose 0.7%, boosted by broad gains in Europe and the US, though it remains down nearly 12% since the start of December.

On Wall Street, the Dow Jones Industrial Average rose 169.77 points, or 0.72%, to 23,845.41; the S&P 500 gained 19.45 points, or 0.76% to 2,565.61; and the Nasdaq Composite added 61.22 points, or 0.9%, to 6,845.13.

US stocks are on pace for their biggest December decline since 1931, the depths of the Great Depression. 

The latest jolt on the growth front came from Japan, which said its export growth slowed to a crawl in November, an ominous signal for the trade-focused economy.

Logistics and delivery firm FedEx, considered a bellwether for the world economy, slashed 2019 forecasts, noting “ongoing deceleration” in global growth.