Fed rate call and Big Tech earnings make for a pivotal day on the markets
Markets expect a US rate pause, while the AI rally has already lifted the Brussels exchange.
The US central bank announces its rate decision this evening. According to Business AM, markets see a roughly 90 percent chance of no change, after the Fed raised rates last month for the first time since 2023, to a range of 3.75 to 4 percent. Inflation rose to 3.7 percent in September, driven mainly by more expensive energy, which keeps another hike in December on the table. ING analysts do not rule out a split decision.
De Tijd expects that Fed Chair Kevin Warsh's comments could also sway AI enthusiasm on the markets. After the closing bell on Wall Street, Alphabet and Microsoft publish their quarterly figures. Investors mainly want to see whether Alphabet's huge AI spending is paying off, Business AM writes.
In Brussels the AI rally was already felt on Tuesday: chip designer Melexis and Umicore led a slightly higher Bel20, De Tijd reports. Elsewhere in the sector, Dutch chip equipment maker ASMI said AI investment is supporting its revenue well into 2027, and South Korea's SK Hynix expects the chip shortage to last until 2030, the same paper writes. On Thursday it is the European Central Bank's turn.