The US Federal Reserve will announce its interest rate decision at 21:00 tonight. Fed Chairman Jerome Powell will hold a press conference at 21:30.
Global Stock Markets are in turmoil as the Fed is expected to announce that it will reduce asset purchases with tonight’s interest rate decision.
On Tuesday, Wall Street indices saw new highs: the S&P 500 rose 0.37 percent, and the Nasdaq 100 closed at a record high of 0.42 percent.
US and European futures indices seem undecided to find direction this morning.
Selling pressure prevails in Asia, where Japanese markets are closed due to Culture Day. Hong Kong Hang Seng and China CSI are 300 minus, with losses in Chinese tech stocks. On the other hand, Chinese Premier Li Keqiang’s statement that the economy in his country is facing new downward pressures also affected the direction.
Supported by the recovery in iron ore prices, Australia’s S&P/ASX 200 index stands out positively, rising 0.80 percent.
Bloomberg Dollar Index, which closed with an increase of 0.20 percent on Tuesday, is flat before today’s Fed statements.
Interest Rate Signals Will be Looked in Fed’s Statements
The decline in short-term bonds comes when investors are trying to understand how central banks will respond to rising inflation.
Jeanette Garretty, Chief Economist at Robertson Stephens Wealth Management, said: “The big question will be whether they will signal when rate hikes will begin. I think they will avoid giving a message in that direction. ”
Oil prices are falling ahead of tomorrow’s OPEC+ meeting after the American Petroleum Institute announced that US crude inventories dropped last week. The barrel of crude oil fell below $84 again.