Brussels probably opens cautiously in the run-up to Fed rent decision
(ABM FN) The Brussels stock exchange will open cautiously on Wednesday, in the run-up to the US Federal Reserve’s interest rate decision tonight after trading.
This morning, investors can comment on a number of company results, and European and US services purchasing managers’ indices will follow in the course of the morning. There is also a jobs report in America from ADP, in the run-up to the official report on Friday.
Most of the attention is focused on the Fed. It seems certain that the central bank is running at 50 basis points tonight as the percent has started up to 8.5.
Core PCE inflation, a favorite metric for the Fed, stood at 5.2 percent in March.
In recent weeks, several Fed officials, including Chairman Jerome Powell, have been preparing the market for a 50 basis point rate hike and faster rate hikes in general.
“There is no reason for the Fed to adjust its plans to tighten monetary policy,” said economist Luc Aben of Van Lanschot Kempen.
Improving interest rates by 50 basis points from building the balance sheet has been fully priced in by the markets, with Aben.
“So that the effective announcement may lead to little movement. That would only come, Fed Chair Jerome Powell would hint that future interest rate steps may start at 75 basis points. But we do not expect that on Wednesday,” said the economist of Van Lanschot Kempen.
The euro/dollar is trading at 1.0506 this morning. The US 10-year yield is trading at 2,969.
Oil became cheaper on Tuesday and the future is again trading a large percentage in the green this morning.
Company news
Solvay performed much better than expected in the first quarter of 2022 and the outlook for 2022 is therefore changing. CEO Ilham Kadri spoke of record results. “We expect a positive price response,” said Jefferies analyst Chris Counihan.
Shurgard posted strong results in the first quarter of 2022. Shurgard reiterated the previously issued outlook. The storage company expects a turnover growth of more than 7 percent over the whole of 2022.
Biocartis’s Idylla platform enables faster screening of targeted gene fusions with the GeneFusion Assay. This was revealed in a new study by the American Memorial Sloan Kettering Cancer Center, according to the diagnostic company.
Berenberg raised the price target for Hyloris from 18.00 to 21.00 euros, with an unchanged buy recommendation.
Trader Bert van der Pol of Today’s Group is not on a report from Barclays in which the advice for Telenet has been lowered from Buy to Hold.
Wall Street closing positions
US stocks closed in green on Tuesday. The Dow gained 0.2 percent, as did the Nasdaq, and the S&P 500 rose 0.5 percent to 4,175.48 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.