Global markets firm after volatile period

LONDON — Global stock markets stabilized Wednesday after a volatile few days when investors around the world fretted over the likelihood of an imminent rate hike from the US Federal Reserve. KEEPING SCORE: In Europe, Germany’s DAX was up 0.4 percent at 10,427 while the FTSE 100 index of leading British shares rose 0.6 percent to 6,704. The CAC-40 in France was flat at 4,388. US stocks were poised for a solid opening, with Dow futures and the The current focus in markets is whether the Fed will raise interest rates at its meeting next week. Over the past few sessions, investors have weighed a series of speeches from Fed officials, some more hawkish than others — many stock indexes have recorded their worst sessions in months. The growing consensus now in the markets is that the Fed will hold fire until December, which has helped calm the mood. Low rates over many years have boosted stock prices as investors put their money in assets given the low returns available in bonds. “Markets are beginning to show signs of stabilization, following on from a surge in volatility,” said Joshua Mahony, market analyst at IG. “The heightened sensitivity to Fed rhetoric should cool as we enter a blackout period ahead of next week’s policy meeting.” The big corporate development was the news that German drug and farm chemical maker Bayer AG says it has agreed to acquire seed and weed-killer company Monsanto in an all-cash deal valued at $66 billion. Bayer’s share price was up 3 percent following the news. Monsanto shares have yet to begin trading. Japan’s benchmark Nikkei 225 lost 0.7 percent to close at 16,614.24. Hong Kong’s Hang Seng was down 0.1 percent at 23,183.44. The Shanghai Composite fell 0.7 percent to 3,002.85. India’s Sensex rose 0.04 percent to 28,364.31. South Korean markets were closed for a national holiday. Following big falls on Tuesday stoked by a weak demand forecast from the International Energy Agency, oil prices steadied. Benchmark New York crude was down 6 cents at $44.83 a barrel while the international standard, Brent, fell 33 cents to $46.77 a barrel. World oil prices crept higher Wednesday as traders awaited US crude inventories data, and mulled gloomy supply and demand forecasts which have cast a pall over the market this week. Oil also edged upwards after US industry body the American Petroleum Institute (API) reported overnight that crude reserves had risen by far less than expected last week, indicating keen demand in the world’s top crude consuming nation. By 1115 GMT, US benchmark West Texas Intermediate for delivery in October had climbed 24 cents to $45.14 a barrel. Brent North Sea crude for November delivery won 16 cents to $47.26 a barrel compared with the previous day’s close. Crude futures had dived Tuesday after the International Energy Agency (IEA) forecast a continuing global supply glut in 2017. Later on Wednesday, the US government’s Energy Information Administration (EIA) will publish its official report on commercial inventories for the week ending Sept. 9. “This morning’s bullish price action has been spurred as a result of API data which has shown a smaller than expected stockpile build in the US, with stocks only increasing 1.4 million barrels versus a forecast of 3.8 million barrels,” said analyst Dorian Lucas at energy consultancy Inenco. “EIA stockpile data is expected later today, which should provide some additional direction to crude oil prices. “The forecast is for a 2.8-million-barrel build, which if realized should see prices decline intraday.” The euro rose 0.1 percent to $1.1222 while the dollar rose 0.3 percent to 102.82 yen.