Stocks flat as investors await Fed policy statement: global markets

NEW YORK: Stock markets around the world were little changed on Wednesday as investors awaited the Federal Reserve's policy statement, with expectations high that the US central bank will maintain a pledge to keep rates low for a "considerable time."

Shares rose early, boosted by a report that China's central bank would provide the country's big lenders with fresh funds, but stocks pared gains as the release of the Fed's policy statement, due at 2 p.m. (1800 GMT) drew nearer.

Uncertainty also continued around Thursday's Scottish independence referendum, which most polls suggest is too close to predict.

Markets rallied on Tuesday as investors bet that the Fed would keep the "considerable time" language in its statement. While that phrase may be qualified, dropping it entirely could be taken as a hawkish step that could pressure equities and strengthen the dollar.

"There is no overwhelming need to come across all hawkish yet, and a return to some kind of normality is expected at some stage, the Fed is unlikely to take any chances which could negatively impact economic growth in the short term," said Gary Jenkins, chief credit strategist at LNG Capital.

"For this particular recovery, I think that the Fed would rather act a little bit too late than a little bit too early."

The Dow Jones industrial average rose 11.43 points, or 0.07 percent, to 17,143.4, the S&P 500 gained 0.46 points, or 0.02 percent, to 1,999.44, and the Nasdaq Composite added 5.79 points, or 0.13 percent, to 4,558.55.

The MSCI International ACWI Price Index rose 0.1 percent while an index of top European shares ended up 0.4 percent.

Shares in Shanghai closed up 0.5 percent while Hong Kong's Hang Seng Index finished up 1 percent, boosted by reports that the People's Bank of China would provide $81.5 billion in short-term funding to the country's top five banks.

The dollar index and the euro were unchanged at 84.037 and $1.2955, respectively. The benchmark 10-year US Treasury note was up 3/32 in price, with the yield at 2.5779 percent.

In commodities trading, copper futures rose 0.4 percent, aided by the Chinese report. Gold rose less than 0.1 percent in its third straight daily advance while silver was down 0.1 percent.

Brent crude futures slipped 0.3 percent to $98.75 per barrel while US crude futures lost 1 percent to $93.99 a barrel, declining after a jump of nearly 3 percent over the previous two sessions.