- Stock markets rose on Wednesday ahead of the Federal Reserve's eagerly awaited meeting, as markets are expected to rise 25 bps.
- A brief overview of the progress of the Russia-Ukraine talks has led to optimism that a ceasefire is possible.
- Oil has risen, outpacing its recent losses due to concerns over an increase in Chinese Covid cases.
Global stocks were on the edge on Wednesday on the back of widely anticipated interest rate hikes
Federal Reserve Clear progress in diplomatic talks between Russia and Ukraine has also fueled sentiment.
The Fed is widely expected to raise interest rates by 25 basis points after a two-day meeting. This will be the first rate hike after 2018. Investors will consider the post-conference announcement to assess the Fed's potential outlook for inflation, rising energy and commodity prices and a possible economic slowdown in the face of a possible economic slowdown. . Would have been. A result.
Matt Simpson said, "This (fully anticipated) rate hike is not important, but whether there are any significant changes in the dot plot or economic forecasts, because this year's hike shows that the markets are right." Or not. "Senior Market Analyst at City Index.
More positive signals from peace talks between Russia and Ukraine contributed to the rise in stocks. Ukrainian President Volodymyr Zhelensky said talks with Russia with a meeting between the two neighbors on Wednesday looked more realistic.
"After a positive rise from Wall Street, another spring in sentiment today, the ongoing peace talks have given hope that the war will end," Simpson said.
Fears of a sharp rise in Fed rates and rising geopolitical tensions from the Russia-Ukraine conflict are major factors. Instability In the markets. Expectations of more clarity and positive news boosted markets.
US futures were up 1.15% on Wednesday, up 1.15% on the S&P 500, 0.93% on the Dow Jones and 1.80% on the Nasdaq futures.
European stocks also rose. The FTSE 100 was up 1.15% and the Stock 600 was up 2.18%. The French CAC 40 was up 2.68% and the German DAX was up 2.53%.
Brent crude was down 0.1% at $ 99.80 a barrel, while WTI crude was down 0.3% at $ 96.14. Oil prices rose to a 14-year high last week on fears of an irreversible gap in global supplies after Western nations imposed sanctions on Russia's energy exports.
So far, Russia has not followed suit in imposing sanctions, with the exception of the US and the UK, which account for only a small portion of oil and gas exports. However, this week the rise in Kovid-19 cases in major Chinese cities raised concerns about the impact on demand among the world’s largest commodity importer.
Gold, a traditional safe haven, fell 0.29% to $ 1924.25 an ounce during market volatility.
The US dollar index fell 0.37% to $ 98.73 before the Fed meeting.
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Courtesy Grizler.com
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