European stock markets are currently experiencing a mixed trend, with the Dax trading around base levels, the British FTSE up 0.3%, and the French CAC down 0.7%. Meanwhile, in the US, futures are trading positively. In Asia, the Chinese stock markets are closed for Labor Day, while the Japanese Nikkei is stable and the Hang Seng is up by over 2%. Last night on Wall Street, volatility was seen as main indexes experienced fluctuations following the Fed’s decision to keep interest rates unchanged.
Chip stocks traded lower after disappointing reports from companies like AMD and Nvidia. The reporting season in the US continues with Pfizer exceeding profit and revenue forecasts but others like CVS Health and Estee Lauder disappointed investors with weak forecasts. Tonight, Apple is expected to announce its financial results.
In the bond market, government bond yields in the US are rising slightly after plunging sharply post-Fed’s interest rate decision. Oil prices fluctuated with a slight increase this morning. The Fed’s decision to keep interest rates unchanged reassured investors as Chairman Powell emphasized that further hikes were not planned due to uncertainty about economic forecasts and commitment to only raising rates when confident about target price level movement. This helped ease concerns about inflation and US economy for investors.
