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Wednesday, December 14, 2016, 16:28

Stocks barely move as investors await Fed decision

By Reuters

Hong Kong stocks were flat on Wednesday, despite Wall Street's gains and sustained strength in energy shares, as investors cautiously awaited results of a Federal Reserve meeting.

The Hang Seng index was unchanged at 22,456.62, while the China Enterprises Index lost 0.1 percent, to 9,706.15 points.

Analysts say a hike of 25 basis points in US interest rates by the Federal Reserve is already priced in. But the market will be focusing on the Fed's statement and economic forecasts for clues on its thinking about rate rises next year and how President-elect Donald Trump's policies may affect the outlook for growth and inflation.

Sector performance in the city was mixed, with gains in energy majors countered by declines in materials and utilities shares.

Expectations of rising oil prices gave energy shares a boost, after OPEC and some non-OPEC oil producers agreed at the weekend to cut output.

Shares of real estate developers fell for a third day, hurt by rising borrowing cost concerns. The city's currency peg toward the greenback ensures that interest rates follow those of the US.

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