US stock markets closed higher on Wednesday as investors reacted to the Federal Reserve’s decision to leave interest rates unchanged and kept a close eye on strained US-China trade relations. The S&P 500 rose 0.43% closing at 5 631.28, the Nasdaq 100 gained 0.27% to close at 17 738.16, while the Dow Jones climbed by 284.97 points. Fed Chair Jerome Powell signalled a cautious approach, highlighting growing risks to inflation and employment, and stressed the need for more clarity before considering rate cuts.

In Asia, Hong Kong’s Hang Seng rose 0.10%, supported by gains in property and financial sectors after the People’s Bank of China (PBOC) cut the reserve requirement ratio to stimulate growth. Japan’s Nikkei 225 dipped 0.14% as optimism around trade talks was offset by corporate and economic concerns. China confirmed Vice Premier He Lifeng will meet US Treasury Secretary Scott Bessent in Switzerland, sparking modest hope for progress in negotiations.

European markets ended lower, with both the STOXX 50 and STOXX 600 falling 0.60%, as traders remained cautious ahead of the Fed announcement and sifted through earnings data. The FTSE dropped 0.64% to close at 8 542.81. 

On the local front, the JSE dropped 0.58% and the rand weakened to R18.26, decreasing by 0.26%, against the US dollar late in the session.

In commodities, WTI crude oil fell nearly 2% to under $58 a barrel, pressured by ongoing economic uncertainty and tempered expectations for a breakthrough in US-China trade discussions.