Stoxx 600, FTSE, DAX & Fed Decision: Market Outlook
- stock market ended the session flat, with mixed regional sector performance.
Here’s a summary of the key data from the provided text:
* Market Overview: U.S. stock market ended the session flat, with mixed regional sector performance.
* Delivery Hero: Shares jumped 13.7% after the company announced it was evaluating strategic options, including partnerships and capital allocation changes.
* Federal Reserve (Fed) Meeting: Global markets are awaiting the Fed’s decision today (Wednesday). A 0.25% interest rate cut is widely expected (87.6% probability).
* Fed sentiment: There’s division within the Federal Open Market Committee regarding further rate cuts – some fear worsening inflation, while others want to support the labor market. Investors will be closely watching the post-meeting statement and Jerome Powell‘s press conference.
* Future Rate Expectations: Markets are pricing in a 69.3% chance of the key interest rate remaining in the 3.5%-3.75% range after the January meeting, suggesting expectations of a pause in rate cuts.
* European Markets: The Stoxx Europe Banks index closed 0.7% higher.
* Trump’s Comments on Europe: U.S. President Trump criticized European leaders as “weak” in a Politico interview, criticizing their handling of migration and the Ukraine war. This is likely to negatively impact European market sentiment.
* Ukraine Support: European allies are working to ensure continued support for Ukraine.