The European stock markets were able to mark a new high again yesterday before the Fed meeting. The growth of the index was low yesterday, Wednesday, but it shows the current intrinsic strength of European stocks. As expected, the Federal Reserve did not lower interest rates further and accordingly did not allow itself to be influenced by the US government. On the contrary, the Federal Reserve around Jerome Powell points out that inflation stubbornly refuses to continue on its path towards two percent. For the time being, further interest rate cuts will have to be waited. It is not surprising that the US markets have weakened somewhat, but the European markets have been left cold. Here, the focus is on the ECB, which will make and announce an interest rate decision today, Thursday. The market expectation is clear. Interest rates will be lowered further today, Thursday, and the market could thus get a further impetus that the rally on the stock markets is far from over, even if the US markets are currently showing somewhat weaker growth.
Was that the end of the euro interim high?
The problem, however, is the euro, which can and probably will come under more pressure as a result. Interest rates in the euro area diverge away from the interest rate level of the US dollar due to another interest rate cut. Consequently, this can mean that the euro will abruptly end its path towards 1.05 US dollars and move again towards parity. Upside-down world in monetary policy, since it is actually Donald Trump who wants a cheap dollar, it is the European Union that can set an example for a way out of the recession with its monetary policy.
Stable stock markets in Great Britain - ASML sets exclamation mark
The situation is similar in Great Britain. The stock market is showing emerging optimism and has already managed to jump above its resistance this week. On Wednesday, however, slight stagnation set in. However, this does not have to be a negative signal, because the index can remain stable at a high level. The market can take its time to see what directions central banks around the globe are taking before the Bank of England sets out the monetary policy framework next week. The semiconductor giant ASML was able to show top results and thus regain the confidence of investors and investors.
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