US stocks trade weaker amid rising geopolitical tensions, FOMC minutes awaited
|Major US equity indices opened lower on Wednesday and were being weighed down by rising geopolitical tensions between the US and Russia.
The latest optimism over easing US-China tensions quickly faded, with the US President Donald Trump's tweet, signalling a possible US military strike in Syria, driving investors away from perceived riskier assets - like equities.
The face-off intensified after Trump responded to the Russian ambassador to Lebanon Alexander Zasypkin's overnight comments that any US missiles fired at Syria would be shot down and warned that missiles will be coming.
This coupled with the latest political development in the US, where in House Speaker Paul Ryan is said to step-down ahead of the November mid-term elections, further dented investors' confidence and collaborated to the early weakness.
On the economic data front, the headline US CPI fell 0.1% in March, while the core CPI was up 0.2% and dampened prospects for steeper Fed monetary policy tightening cycle. Hence, focus now shifts to the release of minutes from the most recent FOMC meeting, which will help determine the extent of the Fed hawkishness and eventually drive sentiment around equity markets.
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