Investors are mainly awaiting the US interest rate decision on Election Day
The stock market trading in the dark during the national elections on Wednesday is mainly dominated by the interest rate decision from the US Federal Reserve (Fed), which will be announced later today. Special attention will be given to what Fed Chairman Jerome Powell has to say about rising inflation and rising interest rates in the bond markets. Investors fear that inflation and market interest rates are driven too quickly by a combination of an economic recovery and an influx of funds from large support packages.
Experts generally assume that Powell will try to reassure the market in his interpretation of the interest rate decision. No real Fed intervention is expected. Attention is also being paid to the central bank’s revised forecast for economic growth and inflation following the advancement of the vaccination program in the United States and the approval of President Joe Biden’s massive bailout package.
Judging by the opening indicators, it appears that the Amsterdam AEX Index started somewhat lower on Election Day in the Netherlands. Equity markets will likely open a bit red elsewhere in Europe as well. Major Asian markets remained close to home on Wednesday, awaiting the Fed’s decision. Wall Street closed mainly lower on Tuesday.
In the battle against the Coronavirus, European countries want to start using the AstraZeneca vaccine again if the EMA tests positive. EMA experts have yet to find any evidence indicating that AstraZeneca’s coronavirus vaccine is causing blood clotting problems. A final result is expected on Thursday.
The European Commission will present a proposal for a Corona passport on Wednesday, which must be approved by member states and the European Parliament. The digital certificate is proof that the owner has been vaccinated against Covid-19, was recently tested negatively, or that it contains antibodies due to a previous Corona infection and should make it possible to travel more freely in the European Union this summer.
In Damruk, NSI Real Estate announced that it had purchased three office buildings for around 80 million euros. The largest building is the Atlanta Building at Stadhouderskade in Amsterdam, which has been fully leased out for fifteen years to flexible workspace provider WeWork.
The euro was worth $ 1.1906, compared to $ 1.1898 the day before. The price of a barrel of US oil jumped 0.6 percent to $ 65.18. Brent oil price increased 0.5 percent at $ 68.71 a barrel.
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