Europe had a slow morning after a holiday across most of the continent, but after a choppy few weeks for equity markets, most traders were glad that the previous day’s Fed meeting had not caused major fires. artificial.
The US central bank’s monetary policy authorities decided to keep rates at the 5.25%-5.5% they have been at since July, but it was the press conference after the meeting that was most interesting.
Although the president of the Fed, Jerome Powellindicated that persistently high inflation will delay the long-awaited rate cut, refused to accept the possibility that they may have to rise again.
“It did enough to provide a calming balm to the markets for the moment,” said James Lord, currency strategist at Morgan Stanley. “But whether that’s enough to be sustainable will depend on how the data evolves.”
Attention also remains focused on the yen and its precarious level in the markets. Following Powell’s words, the Japanese currency soared against the dollar, in its second alleged jump of the week driven by an intervention, reaching 153 units, before falling to 155.5.
He dollar index, which compares the greenback to a basket of six major currencies, was trading flat, after falling 0.6% on Wednesday from nearly six-month highs. The euro gained 0.1% to $1.0727, despite data showing worsening manufacturing activity in the euro zone.
Index futures S&P 500 on Wall Street They rose 0.7%, which suggests that it will recover the lost ground late on Wednesday.
Most attention will focus on Apple’s results after the markets close, with analysts bracing for a big decline in sales and waiting to learn how the company plans to integrate artificial intelligence into its products. iPhones.
Oil prices advanced around 1% after a sharp drop caused by the unexpected increase in US reserves.
The Fed’s signals were still being digested by fixed income markets, awaiting key data on US non-farm payrolls, which will be released on Friday. The yield on 10-year Treasury bonds rose 2.3 basis points to 4.611%, and that on two-year notes gained 1 basis point to 4.9497%.
Aside from oil, trading in other commodities was subdued by the weeklong closure of Chinese markets for a holiday. Gold fell more than 0.6%, close to losing the $2,300 per ounce mark.
Source: Ambito
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