Global shares mostly retreat as markets await Fed rate decision

The Nasdaq was the day's outperformer, surging more than one percent to a fresh all-time high behind big gains for Broadcom, Google-parent Alphabet and other tech names.

Global shares mostly retreated Monday as markets awaited a Federal Reserve interest rate decision while concerns over political battles in Europe and China’s struggling economy hit equities.

But the Nasdaq was the day’s outperformer, surging more than one percent to a fresh all-time high behind big gains for Broadcom, Google-parent Alphabet and other tech names.

Bitcoin, meanwhile, hit a new record high, reaching $107,115.89 as it continues to gain support from Donald Trump’s backing of cryptocurrencies.

Investors are turning their attention to Wednesday’s US Federal Reserve decision on borrowing costs at its last policy meeting of the year before Trump takes office next month.

But there are fears it will have to slow its pace of easing next year owing to sticky inflation and bets that Trump’s tax cuts and tariffs will reignite price increases.

“How to accurately forecast economic activity and inflation rates, when the President-elect’s policies are expected to have a huge economic impact and could trigger more inflation?” she wrote.

Investors also tracked data showing that Chinese retail sales grew 3.0 percent last month, much slower than in October and well off the five percent forecast.

Hong Kong and Shanghai stock markets closed lower after the data release while oil prices fell slightly on concerns over Chinese demand.

In Europe, the Paris stock market fell 0.7 percent after Moody’s downgraded France’s credit rating Saturday following months of political crisis and the appointment of centrist Francois Bayrou as prime minister.

Frankfurt slid 0.5 percent as Germany’s embattled center-left Chancellor Olaf Scholz lost a confidence vote, triggering elections set for February 23.

A closely watched survey released Monday showed that business activity declined further in the eurozone in December, though less sharply than the previous month thanks to an upturn in the services sector.