Markets plunge as Fed disappoints.

It was an unusual sight this morning for EU traders as they came to their desks and saw equity futures down nearly 2% - we are certainly not used to see that!

So far it has been a busy day: In July, new car registrations dropped by 3.7% year-on-year to 1,281,740 vehicles in the EU and UK countries, statistics from the European Automobile Manufacturers' Association (ACEA) showed. Sales fell by 17.6% in August to 884,394 vehicles.

On Wednesday evening, the Fed signalled that interest rates would stay close to zero at least through 2023, to support the economy's ongoing recovery. It is likely that the zero interest rate policy will remain here much longer though.

However, markets were hoping for more as inflation remains low, and the Fed is now obliged to bring it up since it introduced an average inflation targeting scheme last month. As the central bank did not announce any new stimulus and the monthly QE purchases remained the same, investors were disappointed, and equities plunged. 

Later in the day, the EU CPI indices are due, and inflation should remain weak in the euro bloc, despite massive interventions by the ECB.

The focus will then shift to the Bank of England meeting, but no changes to monetary policy are expected there. 

During the US session, jobless claims are due, along with building permits and housing starts.
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