European stock markets are experiencing mixed trends, with the Dax trading around base levels and the British FTSE up 0.3%, while the French CAC is down 0.7%. In contrast, US futures are trading positively, and Asian stock markets are performing well, with the Chinese markets closed for Labor Day.
Last night on Wall Street, volatility was seen in the main indexes after the Fed’s decision to keep interest rates unchanged. The reporting season continues in the US, with companies like Pfizer exceeding profit and revenue forecasts while 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 this morning before rising slightly. The Fed’s decision to keep interest rates unchanged reassured investors, with Chairman Powell emphasizing that further hikes are not on the agenda.
Powell noted that inflation remains sensitive to economic risks but that GDP data shows strong demand in the US. He stressed that uncertainty remains about the economic forecast and that the Fed will only raise interest rates when confident that price levels are moving towards targets. This reassurance from Powell helped ease concerns about inflation for investors.
Overall, despite some mixed trends in global stock markets and fluctuations in oil prices and bond yields, investors remain cautiously optimistic about economic growth prospects for both Europe and America.