Stocks dropped after statements made by the U.S. Federal Reserve provided now news of possible stimulus packages in the near future and said the economy is expanding moderately.
Hong Kong fell on weak volume after the U.S. market reversed early gains when the Federal Reserve Board signaled it would not take measures to stimulate the U.S. economy.
"The U.S. economy continued to show mixed signals from late November to early January, with improvements in the labor market and consumer spending offset by the drag of a strong dollar and low energy prices, the Federal Reserve said on Wednesday."
Wall Street traded mostly lower today as the Federal Reserve said it sees significant downside risks to the U.S. economy and that additional monetary easing is needed.
The market was trading higher today but plunged after Federal Reserve's Beige Book renewed concerns of weak economic growth for the foreseeable future.
Hong Kong opened lower due to pessimism about the U.S. economic recovery and fell below resistance at the 250 day moving average as investors dumped Chinese private companies.
The Fed's decision to increase its transparency and make known its predictions about the economic future could have an impact on the way that we invest.
Progress was made by European leaders over the weekend, but definitive plans are not expected until Wednesday. Investors should expect volatility until then
While there has been much talk and little action in Europe, investors seem to be optimistic. Netflix dropped over 30 percent after a dim quarterly report exposed the company's struggles.
Hong Kong opened higher, but profit-taking after the recent major rally led to a broad-based retreat. However, lower turnover indicated selling pressure was not great.