Market Summary
Stocks and Bonds Edge Higher Ahead of Fed Decision: Stocks and bonds edged higher as investors awaited the Federal Reserve’s decision, with markets pricing in a more than 90% chance of its first rate hike since 2023. Asian equities rose 0.4%, US stock futures gained 0.2% and European shares were poised to open higher.
Treasury Yields and Oil Ease: The US 10-year Treasury yield eased to 4.99% after reaching 5.04% on Tuesday, while Brent crude slipped to around $108.20 a barrel as its supply-driven rally paused. Gold recovered, while the dollar was little changed.
Central Bank Decisions in Focus: Investors will scrutinise Fed Chair Kevin Warsh’s guidance as persistent inflation and elevated energy prices complicate the interest-rate outlook. UK and Japanese policy decisions are also due this week.
Crypto and Corporate Developments: Bitcoin remained near $75,800 after the US Senate blocked a major crypto bill. In corporate news, OpenAI was reportedly discussing funding at a valuation above $1.2 trillion, Meta called for independent AI safety assessments, and upbeat forecasts from JPMorgan and Wells Fargo contrasted with Bank of America’s earlier caution.
UK Inflation Meets Expectations: UK CPI came in at 3.1%, in line with expectations. Markets are likely to remain range-bound for much of the day as investors await the federal funds rate decision and the subsequent FOMC press conference.
Key Market Moves Today
- S&P 500 Futures: +0.26% (7,676)
- Brent Crude: -1.04% ($107.53)
- Spot Gold: +0.89% ($4,332)
- Bitcoin: Just below $76,000
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