Markets were dragging their heels Wednesday morning as disappointment over China’s economic reform plan and continued chatter about less supportive U.S. monetary policy weighed on stocks.
U.S. stock futures were edging lower ahead of the opening bell, with investors unwilling to push the main indexes to new record highs.
Investors were digesting a Chinese Communist Party communique on economic reform that was heavy on jargon but light on specifics.
This pushed Asian markets lower Wednesday, with the main stock indexes in Hong Kong and Shanghai declining by nearly 2%.
European markets were also moving down in morning trading. London’s FTSE 100 was leading the way with a 0.8% decline.
Speculation about when the Federal Reserve will begin reducing its bond-buying program was also a factor.
“Commentary by Fed officials continues to confound, with some for more stimulus and some for less, some talking of a December taper and some of later,” said Mike van Dulken, head of research at Accendo Markets.
Looking ahead to corporate earnings, retailer Macy’s is due to report results before the market open. Dow component Cisco Systems is set to report after the bell.
Shares of Starbucks were lower in after-hours trading Tuesday after it agreed to pay $2.7 billion to Kraft to settle a contract dispute.
U.S. stocks closed lower Tuesday, after hitting record highs the previous two days.
