S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
U.S. index futures are rebounding after the Fed delivered its first rate hike since 2023. S&P 500 futures are up around 0.6%, while Nasdaq 100 futures are gaining about 0.7% (excluding the contract rollover that took place overnight), following yesterday’s decline in the S&P 500 to its lowest level since July.
- Markets were partly reassured by Kevin Warsh’s message, as the Fed Chair stressed the central bank’s determination to bring inflation under control. Investors interpreted this as a sign that policymakers want to regain control over price pressures, even at the cost of keeping monetary policy restrictive.
- The bond market is seeing a modest recovery. The U.S. 2-year Treasury yield fell by 2 bps to 4.71% after reaching its highest level since 2024 in the previous session, while 10-year and 30-year yields are also down by around 2 bps.
- Investor attention is now shifting to the Bank of England and the Bank of Japan. The BoE is expected to leave rates unchanged on Thursday, while the BoJ is expected to raise interest rates on Friday.
- European indices are pointing to a higher open, while broader Asian equity markets are up around 0.3%, recovering part of their earlier losses following the Fed decision.
- Gold is rebounding after three consecutive losing sessions and has returned to around $4,290 per ounce, supported by a modest pullback in bond yields.
- Oil remains under pressure as signs emerge that supply risks in the Middle East may be easing. Brent is trading around $105 per barrel after falling as much as 5% on Wednesday.
- Saudi Arabia is seeking to restore around half of the capacity of its East-West pipeline following earlier drone attacks, easing some concerns over further supply disruptions.
- Donald Trump said the war with Iran would end “very soon,” further supporting expectations for a decline in the geopolitical risk premium embedded in oil prices. He also said U.S. interest rates should fall to 1% and that the Fed should move quickly.
- The U.S. President warned against Canada joining the European Union and threatened to completely halt trade with Europe if such a scenario were to materialize.
- Exxon Mobil is reportedly close to signing a preliminary agreement that could allow the company to return to Venezuela, according to sources cited by the WSJ. Exxon and state-owned PDVSA are said to be nearing a memorandum covering oil fields with estimated reserves of around 50 billion barrels.
- The Trump administration is considering organizing a high-level meeting focused on artificial intelligence on the sidelines of Chinese President Xi Jinping’s visit next week.
US500 and OIL charts (D1 timeframe)
Source: XTB
Source: XTB
