Fed Rate Decision Sparks Global Panic!

Fed Rate Decision Sparks Global Panic!

The Dax started the trading day on Wednesday with a gentle rise. By 9:30 am, the leading index was calculated at around 20,271 points, a 0.1% increase over the previous day’s close.

Commerzbank shares led the stock market, driven by rumors of a potential takeover following Unicredit’s increased stake in the bank.

At the other end of the list, BASF shares were trading lower.

Market analyst Andreas Lipkow expects a major surprise from the proposed “mega-merger” of Japanese automakers Nissan, Honda, and Mitsubishi. “As a response to the growing dominance of Chinese automakers, the three Japanese companies will consider a potential fusion. Investors are now eagerly watching the European automaker companies and their response to the Japanese move” Lipkow explained.

The focus of the day’s trading is expected to shift to US economic data, including the afternoon’s consumer confidence and interest rate decisions from the US Federal Reserve. “The subsequent press conference with Fed Chairman Jerome Powell’s comments will be of significant importance and more attention-grabbing” Lipkow said.

After the market close, investors may be interested in Micro Technology’s quarterly earnings, which could have an impact on the stock’s movement.

Meanwhile, the euro was slightly weaker in the morning, trading at 1.0491 US dollars per euro, with the dollar equivalent to 0.9532 euros.

Oil prices, however, rose: Brent crude was trading at 73.60 US dollars per barrel at 9 am German time, a 41-cent or 0.6% increase from the previous day’s close.