Global Markets Brace for 'Hawkish Cut' as Fed Decision Looms

U.S. stocks dipped alongside European equities as investors anticipated central bank moves, including an expected Federal Reserve rate cut. Strong U.S. retail sales challenged further rate cuts, while global markets faced pressure from weak Chinese data and awaiting Fed economic forecasts.

As global markets prepared for pivotal central bank decisions, U.S. stocks slipped in line with European shares. Investors focused on economic reports and central bank meetings, notably expecting a rate cut from the Federal Reserve.

Robert Pavlik, a senior portfolio manager, noted the market's strong run prompted profit-taking, especially in light of solid U.S. retail sales data that diminished expectations for future rate cuts.

While Japan, Britain, and Norway's central banks are predicted to pause, Sweden's Riksbank might cut rates. All eyes are on the Federal Reserve's upcoming policy meeting, anticipated to result in a 25 basis point key rate reduction.

(With inputs from agencies.)