(RTTNews) – The Taiwan stock market headed south again on Wednesday, one session after it had halted the two-day slide in which it had surrendered more than 115 points or 1.1 percent. The Taiwan Stock Exchange now rests just above the 10,070-point plateau and the market is looking at a narrow trading range on Thursday.
The global forecast for the Asian markets is mixed to lower following the FOMC rate decision and a tumble in the price of crude oil. The European and U.S. markets were mixed and roughly flat and the Asian markets are tipped to follow suit.
The TSE finished modestly lower on Wednesday following losses from the financial shares and the technology stocks.
For the day, the index fell 55.69 points or 0.55 percent to finish at 10,072.46 after trading between 10,033.25 and 10,165.31 on turnover of 96.95 billion Taiwan dollars.
Among the actives, Taiwan Semiconductor Manufacturing Company shed 0.48 percent, while Largan Precision skidded 2.39 percent, AU Optronics lost 0.82 percent, Innolux tumbled 1.09 percent, Cathay Financial dropped 1.25 percent and Fubon Financial and Hon Hai Precision were unchanged.
The lead from Wall Street is inconclusive as stocks showed a lack of direction on Wednesday before ending mixed after the Federal Reserve raised its benchmark interest rate for the third time in three months despite signs the U.S. economy has cooled off in 2017.
The Dow rose 46.09 points or 0.2 percent to 21,374.56, while the NASDAQ fell 25.48 points or 0.4 percent to 6,194.89 and the S&P 500 eased 2.43 points or 0.1 percent to 2,437.92.
The Federal Open Market Committee voted to raise fed funds to between 1 and 1.25 percent and will start gradual shrinking of its $4.5 trillion balance sheet this year.
The Fed still expects inflation to reach the 2 percent target next year, and the economy is expected to grow at the same pace of around 2 percent for the next three years. As such, the Fed expects to begin implementing a balance sheet normalization program this year.
In economic news, the Commerce Department noted an unexpected drop in retail sales in May, while the Labor Department saw a modest decrease in consumer prices in May amid a steep drop in energy prices.
Crude oil futures dropped to their lowest since November after OPEC warned the global supply glut may worsen. July WTI oil dropped $1.73 or 3.7 percent to $44.73/bbl, the lowest since November.
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