Global shares were little changed on Wednesday as investors kept their eyes peeled for the minutes of a Federal Reserve meeting that could shed light on whether the U.S. central bank was considering moderating interest rate hikes.
The Fed has raised rates significantly in a bid to curb surging inflation, and New Zealand's central bank earlier increased interest rates by a record 75 basis points to 4.25%, a harbinger of more likely hikes from the Federal Reserve, European Central Bank and Bank of England next month.
"There is an expectation that the Fed is probably closer to end of rate hiking cycle than the beginning, certainly to the extent of the rate hikes, the bulk are behind them," said Mike Hewson, chief markets analyst at CMC Markets.
"There is very little interest heading into the Thanksgiving weekend, and consequently markets are drifting higher on inertia. If you have made your money this year, are most probably done," Hewson said.
U.S. markets are closed on Thursday for Thanksgiving. The minutes of the Fed's Nov. meeting are due out on Wednesday.
The MSCI All Country stock index (.MIWD00000PUS) was up 0.12%, though it still down about 18% for the year.
In Europe, the STOXX (.STOXX) index of 600 companies was up 0.1%, leaving it off about 10% for 2022. U.S. stock futures, the S&P 500 e-minis , were slightly firmer.
David Bizer, managing partner at investment manager Global Customised Wealth, said investors were being guided by what they think the Fed would do next, as signs of a slowdown in the U.S economy become clearer.
"The appreciation in markets overall in the fourth quarter is driven by this belief that the Fed is awakening to the fact that the pace and magnitude of their rate increases might have a near term conclusion. It gives the markets confidence that this is going to be the end," Bizer said.
On the corporate news front, shares in Credit Suisse (CSGN.S) sank nearly 6% after the bank said it expects to make a pre-tax loss of up to 1.5 billion Swiss francs in the fourth quarter.
The downturn in euro zone business activity eased slightly in November but overall demand continued to decline as consumers cut spending amid a cost of living crisis, data showed, adding to evidence the currency bloc is entering recession.
