Equities lack trend as interest rolls in, bond yields creep up.
Fed expected to stay course, but outlook on development is improving.
New York LONDON, April 28 : World shares cosied at record highs and the dollar and general bond yields were nudged up on Wednesday as traders waited to see if the U.S. Federal ReserveU.S. Federal Reserve utters the dreaded T word in its mass stimulus program later.
The broad expectation is that it won't want to unsettle markets for now, and with a packed day of corporate earnings, economic data and first address of U.S. President Joe Biden before a joint Congress session there was plenty to navigate.
The broadest index of world shares was below its best month since February, so far.
The index, which tracks shares in 49 nations, was down to 706.08 to 0.54 point or 0.08 percent.
The Nasdaq Composite dropped 113 points or 0.17%, to 33,871. 93. The Dow Jones Industrial Average was 5.3 points, or 0.33%, to 4,192. 02 and the S&P 500 lost 24.69 points or 0.17%, to 14,066. 53.
The dollar was on course for its first unbroken two-day run of gains for the month - April is currently set to be its cruelliest month since July last.
The Benchmark 10-year notes, last came 232 on Tuesday to yield 1.6289% up from 1.622% previously.
The thing we will watch the most is if the Fed claims anything along the lines of tapering of asset purchases, said Jim Caron, a senior portfolio manager at Morgan Stanley Investment Management.
As long as it doesn't get mentioned, we are all good, he said, explaining that with the coronavirus pandemic still worsening in many parts of the world, investors would regard any move towards tapering as premature.
Many Fed watchers expect Chairman Jerome Powell to repeat the bank's recent message that low interest rates and support programs will remain in place for a long time yet.
Biden also addresses Congress and is expected to underscore his administration's plan for infrastructure and stimulus spending.
These developments would normally be positive for stocks, but analysts say so much economic optimism is already being absorbed into the equity market that it is difficult to budge what equities from current levels.
The traders were waiting to hear from ECB President Christine Lagarde and other top policymakers. For May, economic data releases showed an unexpected drop in France's GfK consumer confidence reading after it at least remained stable for April, though an equivalent in Germany stayed steady for the entire month.
Earnings later include technology and internet giants AppleApple Facebook and Qualcomm as well as Ford and Ford.
The network is expected to report a growth in revenue during the COVID pandemic, while Apple is expected to post a more than 32% increase in revenues, driven by 5 G phone demand.
On Tuesday, there was a mixed bag of earnings from Alphabet, 3 M Microsoft and Google-parent Tesla.
In the FX markets, the dollar index declined 0.144%, with the euro dropping 0.1% to $1.2065.
As well as the rise in Treasury yields helping to help the dollar and break-even rates on expected interest-sponsored securities, a measure of 10-year inflation for the coming decade, have increased to 2.41% since 2013, the highest since.
There was excitement in the crypto market as the European Investment Bank said it would sell a two-year digital bond worth 100 million euro on the ethereum blockchain network.
In commodities, ad weight dropped to 16,000 gallons at $1.769. 84 an ounce. New USD gold futures fell 0.72% to $1,765.20 an ounce.