The Taiwan stock market has exhibited volatility over the past four trading days, showing both gains and losses since concluding a two-day decline in which it dropped nearly 360 points, or 1.5 percent. Currently, the Taiwan Stock Exchange stands just below the 23,020-point threshold, and it seems poised for another potential dip on Wednesday.
The global market forecast suggests a negative opening for Asian markets, largely influenced by apprehensions ahead of the FOMC's interest rate decision later today. Both European and U.S. markets closed predominantly lower, suggesting a similar start for Asian exchanges, although there could be opportunities for bargain hunting as the day progresses.
On Tuesday, the TSE experienced a slight decline, driven by losses in financial sectors, offset by gains in technology stocks and a mixed performance from the plastics sector. The index decreased by 21.89 points, or 0.10 percent, to close at 23,018.01, after achieving a high of 23,223.51 earlier in the session.
In terms of specific market movements, Cathay Financial fell by 0.67 percent, Mega Financial declined by 0.76 percent, and First Financial decreased by 0.54 percent. Fubon Financial saw a reduction of 1.28 percent, while E Sun Financial gained 0.73 percent. Taiwan Semiconductor Manufacturing Company dropped 0.92 percent, whereas United Microelectronics Corporation increased by 2.65 percent. Hon Hai Precision added 0.55 percent, Largan Precision edged up 0.20 percent, and Catcher Technology slipped 0.56 percent. MediaTek saw a notable increase of 2.89 percent, Delta Electronics fell 1.53 percent, Novatek Microelectronics improved by 0.42 percent, Formosa Plastics advanced 0.42 percent, Nan Ya Plastics decreased by 0.60 percent, Asia Cement gained 1.32 percent, and CTBC Financial remained unchanged.
Wall Street provided a weak lead, with major averages opening lower on Tuesday and maintaining their downward trajectory throughout the trading session. The Dow Jones Industrial Average fell by 267.58 points, or 0.61 percent, closing at 43,449.90. The NASDAQ dipped 64.83 points, or 0.32 percent, to close at 20,109.06, and the S&P 500 declined by 23.47 points, or 0.39 percent, ending at 6,050.61.
The downturn on Wall Street was largely driven by a retreat in technology stocks, which had previously been leading gains, particularly in networking and semiconductor sectors. Additionally, stocks in telecommunications, financial services, housing, and steel sectors also saw downward movement.
Meanwhile, traders are closely monitoring the Federal Reserve's much-anticipated monetary policy announcement expected later today. While a further quarter-point rate cut by the Fed is broadly anticipated, traders will be keenly awaiting the Fed's statement and its latest economic projections, including future rate forecasts.
Oil prices fell on Tuesday amid concerns about global demand and potential oversupply in the upcoming year. West Texas Intermediate crude oil futures for January closed down by $0.63, or 0.9 percent, at $70.08 per barrel.
The material has been provided by InstaForex Company -
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