(ABM FN) The Brussels stock exchange is expected to start higher on Thursday. Futures on the Euro Stoxx 50 index were barely half a percent in the green about an hour before the stock market bell.
The European main stock exchanges remained closed on Wednesday due to Labor Day. Wall Street was open, and the stock markets initially rose sharply after the interest rate decision, but eventually gave up their gains in the last half hour and closed divided. This morning the American futures are trading in the green.
The main indices in New York also gave up sharp ground in the last hour of trading on Tuesday, with the tech exchange Nasdaq losing 2.0 percent.
The US central bank opted on Wednesday to keep interest rates unchanged, citing a “lack of further progress” in reducing inflation towards the 2 percent target.
Philip Marey of Rabobank told ABM Financial News that it appeared that Powell prefers an interest rate drop. Powell also indicated that he thinks the interest rate is restrictive enough and that a further increase is unlikely.
Marey added that Powell appears to be giving himself two options for lowering rates. On the one hand, if inflation quickly falls towards the 2 percent target, and on the other hand, if the labor market suddenly deteriorates rapidly.
The Rabobank economist still expects two interest rate cuts this year, with the first taking place in September. Marey would also not be surprised, given the development of the American economy, that the deteriorating labor market would be the trigger for lowering interest rates rather than inflation.
The ten-year yield in the US fell slightly after Powell’s words to 4.62 percent and the euro/dollar rose to 1.0720.
The Asian stock markets remained mainly close to home this morning, with the exception of the Hang Seng index in Hong Kong with a gain of 2.2 percent. Shanghai was closed for a public holiday.
The Hong Kong stock exchange initially had a lower opening after the Federal Reserve’s interest rate decision on Wednesday evening, but after the release of sales figures from electric car makers in April, the Hang Seng Tech index rose by as much as four percent. Nio even won more than 20 percent.
Tech giant Tencent also traded just four percent higher, after a slightly lower opening.
Oil prices were again under significant pressure on Wednesday and a barrel of WTI oil fell by 3.6 percent to $ 79.00.
On Wednesday, US inventories appeared to have risen by more than 7 million barrels. The drop in oil prices marks the third straight session loss as ceasefire talks between Israel and Hamas continue.
This morning, oil futures recovered somewhat with a rise of 0.7 percent.
Investors today are paying attention to the Apple figures, which will be released after the close on Wall Street, and the weekly support requests in the US.
Company news
IBA signed a contract with the Connecticut Proton Therapy Center for the installation of a ProteusONE proton therapy system. The typical end-user price for a ProteusONE system with a multi-year maintenance contract is between $40 and $50 million, according to IBA.
Hybrid Software has seen growth accelerate in the first quarter.
Aedifica recorded more profit in the first quarter.
Wall Street closing positions
The S&P 500 index fell 0.3 percent to 5,018.39 points on Wednesday, the Dow Jones index gained 0.2 percent to 37,903.29 points and the Nasdaq closed 0.3 percent lower at 15,605.48 points.
Source: ABM Financial News
ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
Community trend
Will the stock rise or fall following this news item?
Community trend
You must be logged in to perform this action. Log in or Sign up
Tags: Brussels stock market starts higher rest day Fed interest rate decision
-
