Brussels in green towards Fed rate decision
(ABM FN) The Brussels stock exchange will start higher on Wednesday, in the run-up to the Federal Reserve’s rental decision tonight.
About an hour before opening, the future on the Euro Stoxx 50 index was about 0.6 percent higher. On Tuesday, the Bel20 closed 0.9 percent higher at 4,029.86 points.
The Fed’s interest rate decision on Wednesday evening will contain few surprises, market experts believe, but the US central bank may be seizing the moment to further prepare the market for a rate hike in March.
“For example by demonstrating to the strong labor market”, says Luc Aben of Van Lanschot Kempen.
Another key point, Aben says, is the size of the Fed’s size makers “looking into the cards about their plans for the months after March.”
The market is currently projecting four rate hikes in 2022 and taking gradual steps into account, “which thinks that if the Fed is explicit about such gradual approaches, it means investors could argue.
“However, if such a reference is not made, markets may react nervously,” said Van Lanschot Kempen’s economist.
The euro/dollar traded at 1.1292 on Wednesday and the US 10-year yield was trading at 1.777 percent.
In addition to the Fed, the market also has an eye for a stream of US corporate data. It is especially interesting after hours with figures from Intel and Tesla. Microsoft already released numbers on Tuesday evening. And although it showed record sales, the stock initially fell sharply. The stock looks set to open with a profit this afternoon.
The oil price slowed down on Wednesday.
Company news
Cofinimmo announced the sale of the Everegreen office in Brussels for approximately 23 million euros. Furthermore, the real estate investor will also focus 11 million euros on the construction of a residential care center in Spain.
Gambling company Golden Palace are about to acquire Ubiway Retail, a do deal from Bpost. De Tijd writes this on Wednesday based on sources. Talks with Golden Palace are nearing completion, the business newspaper said, which did not provide financial details.
Avantium shareholders have approved the company’s plans to build a molded ship factory for furandicarboxylic acid, from FDCA, the primary raw material for plant-based and recyclable plastic bottles.
Wall Street closing positions
The Dow Jones index fell 0.2 percent on Tuesday to 34,297.73 points. Prices fell on S&P 500 index, 1.2 percent at 4,356 and tech exchange 2.3 percentage points.
Source: ABM Financial News
From Beursplein 5, the editors of Financial news from ABM keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make.