FED did not exclude the possibility of raising interest rates in September
European equity markets rallied on Wednesday supported by strong corporate results and the steady performance of markets in China. Changes in trade in most financial assets, however, remained cautious in anticipation of the political decision of the US Federal Reserve, transmits Reuters.
The pan-European FTSEurofirst 300 index rose 0.8 percent after the manufacturer of Peugeot vehicles reported its first semi-annual net profit in four years. Oil giant Total also reported higher than expected earnings for the second quarter.
“The results of European companies are currently relatively calm, although China has an impact on some of them,” said a senior trader John Plasard by Mirabaud Securities told Reuters.
In Asia index MSCI, which tracks the performance of shares in the Asia-Pacific region outside Japan also grew by 0.4%
The increased risk appetite of investors and increase profitability on benchmark 10-year bonds in the US and in the eurozone, although movements remained moderate before the decision of the US regulator.
Expectations the Fed on Wednesday to mark the growth of the US economy and a stronger labor market in the country, which open the way for a possible increase of the key interest rates in September. US central bank to publish its latest policy statement at 14:00 local time (after completion of the editorial pieces – note. Ed.) After a two-day meeting, which summarize how has developed economy since the last meeting in June . Earlier this year, the Fed announced that it will follow the so-called. approach “meeting meeting” regarding the choice of the right moment in which to take the first increase of interest rates since June 2006, and will be guided in its decision solely on the development of economic indicators.
Before the meeting of the regulator in September is expected announcement of a number of data about the state of the labor market, inflation and GDP, which, according to economists at Barclays Geypan Michael and Rob Martin means that the Fed is unlikely to emit too detailed signals about his plans after the conclusion of this meeting, the agency notes.
Although this week is not expected to change interest rates, investors remain focused on the results of the Fed meeting, as markets remain divided as to whether the central bank will take a position in the direction of tightening or loosening of monetary policy, and no shortage of opinions that no decision can be made in either direction. In a recent hearing before Congress, Fed Chairman Janet Yellen did not exclude the possibility of raising interest rates in September but gave no signals that will certainly have that.