Markets little changed as US-China trade progress and stable Fed rates “priced in”

Markets were mostly relatively little-changed on Tuesday.

The S&P 500 was flat and the Nikkei 225 dipped 0.1 percent but the STOXX Europe 600 rose 0.6 percent.

Market sentiment may have been affected by a report that China is pushing back against US demands for concessions in bilateral trade talks.

The Federal Reserve also began a two-day policy meeting which will conclude on Wednesday.

Cliff Hodge, director of investments for Cornerstone Wealth, thinks that “positive developments on trade, and a Fed on hold...are priced in”.

“If something were to change on either front, it would open up the markets to increased volatility in the days and weeks ahead,” he said.

“It’s been a fairly stable trading environment, as the market has largely built in expectations that we’ll get some kind of deal with China and it isn’t anticipating any changes to interest-rate policy from the Fed,” said Patrick Healey, president of Caliber Financial Partners.

Still, concerns over global economic growth will linger, especially after FedEx reported declining international revenue after the closing bell on Tuesday.