The main stock exchanges in Europe closed this Wednesday (10) in opposite directions, before the monetary policy decision of the Federal Reserve (Fed). A decline in interest rates is expected, already widely anticipated, which draws attention to Chairman Jerome Powell’s communication, the Summary of Economic Projections (SEP) and the dot chart. The market is also evaluating statements made earlier by the President of the European Central Bank (ECB), Christine Lagarde.
The pan-European Stoxx 600 index closed stable at 577.78 points. The Frankfurt DAX lost 0.13%, to 24,130.14 points; and the CAC 40 in Paris lost 0.37%, to 8,022.69 points. London’s FTSE 100 rose 0.14% to 9,655.53 points.
IG’s Chris Beauchamp believes the stock market moves were not drastic and signaled a market reluctant to invest before Powell’s statement. “The moderate performance of European markets reflects uncertainty (over Powell’s position). Why take large positions when a single press conference can radically change the outlook?” asks the chief market analyst.
Lagarde said earlier that the ECB could raise its growth projections again in December, in addition to affirming, once again, that monetary policy is in a “good position”, contradicting the speech of Isabel Schnabel, member of the body, who signaled the possibility of an increase in interest rates in the not so near future.
Investors are also closely following peace talks between Russia and Ukraine, with a new proposal to end the war expected to be presented soon. Relations between European leaders and President Donald Trump have suffered another blow, however, after the Republican described them as “weak” in an interview with Politico published on Tuesday.
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