The FTSE 100 expected stable after the Fed status quo

(Alliance News) – London markets should open up slightly on Thursday. Nevertheless, in a context rich in catalysts, while the American federal reserve maintained its unchanged interest rates and American technological giants have exceeded expectations.

IG indicates that the term contracts anticipate an opening of the FTSE 100 up only 2.4 points at 9,139.34. Moreover, The Londonian capitalization index had closed slightly 0.62 point at 9,136.94 on Wednesday.

The Sterling book fell to USD 1,3269 early Thursday, against USD 1.3285 at the end of the London Stock Exchange on Wednesday.

The euro was exchanged at USD 1.1599, up compared to USD 1,1479 on Wednesday evening. For example, Faced with the Yen, the dollar was listed at 148.82 JPY against 148.94 JPY.

The yield of US Treasury bills at 10 years contracted 4.35%, compared to 4.37%. Moreover, The one at 30 fell at ftse 100 expected stable after 4.88%, compared to 4.91%.

The American federal reserve left its rates unchanged for the fifth consecutive meeting. Consequently, after a shared vote, continuing its wait -and -see strategy in the face of customs duties.

After two days of meeting, the Federal Open Market Committee (FOMC) voted to maintain the rates in the range of 4.25% to 4.50%. For example, Two members of the committee, governors Christopher Waller and Michelle Bowman, expressed their dissent by supporting a drop of 0.25 points.

In a press release. Consequently, the FOMC said that uncertainty about economic prospects remained high and that recent indicators suggest a slowdown in growth in the first half.

“The unemployment rate remains low and the labor market remains solid. Moreover, Inflation remains somewhat high, ”added the FOMC.

The president of the Fed said that the impact of customs duties remained to be evaluated. For example, while noting a slowdown in ftse 100 expected stable after economic growth. Meanwhile, Jerome Powell said the rise in prices is starting to repercussions on certain consumer prices.

“We have the feeling that there is still a lot to come,” he added. In addition, “We must consider that we are only in the early days. Moreover, ” said Powell about the new trade policy, stressing that “there is still a long way to go”.

Powell said that no decision was made for September, recalling that the Fed never decides in advance. According to him. the current key rate is moderately restrictive and “it seems, to me as at almost the entire committee, that the economy does not react as if the restrictive policy brake it inappropriately”.

For the rest. Stephen Innes of Spi Asset Management believes: “A drop in December always seems the most plausible entry scenario. Inflation could reflect with the repercussions of prices. the demand for labor moderates, ftse 100 expected stable after and the real estate market enters the disinflation phase. If the dam yields, a movement of 50 base points would not be a surprise. This is exactly the strategy adopted in 2024: wait until you are convinced, then act strongly. »»

During the night, the Bank of Japan also maintained its main key rate unchanged at 0.5%, in accordance with the expectations of economists.

The results season continues with several heavyweights of American tech exceeding forecasts.

The Microsoft title jumped after the publication of results above expectations. carried by the exceptional performance of its Cloud, Azure activity.

The Redmond Technological Group, in the state of Washington, announced a net profit up 24% to 27.23 billion USD for the closed quarter on June 30, fourth tax quarter of Microsoft, against 22.04 billion USD a year earlier.

The profit per share diluted increased from 24% to 3.65 USD, against USD 2.95 last ftse 100 expected stable after year, exceeding the consensus of 3.37 USD. Turnover jumped 18% to 76.44 billion USD, compared to 64.73 billion USD a year earlier, also above the consensus of 73.9 billion USD.

The title Meta Platforms has also progressed after scholarship. the company of Menlo Park having published quarterly results superior to expectations.

Meta’s second quarter net profit climbed 36% to 18.34 billion USD, compared to USD 13.47 billion a year earlier, an increase of 38% per share diluted to USD 7.14 against USD 5.16. Turnover reached USD 47.52 billion, up 22% compared to 39.07 billion USD.

In detail, advertising revenues reached 46.56 billion USD against 38.33 billion USD. Reality Labs’ revenues increased to USD 370 million against USD 353 million. The turnover exceeds 6% the consensus cited by Yahoo, BPA by 21%.

For the third quarter, Meta anticipates turnover between 47.5 and 50.5 billion USD, assuming a positive exchange effect of ftse 100 expected stable after around 1%.

As for Customs Rights. US President Trump announced that India would face 25% prices and spoke of an unintegrated “penalty” linked to Russian arms and energy purchases. These measures will come into force on Friday, he published on its Truth Social platform.

At the same time. the United States will impose a rate of 15% on imports from South Korea, while Trump praised a “full trade agreement” between the two countries.

“Intriguating. although we expected such a decision, no information was communicated concerning a possible extension of the commercial break between the United States and China yesterday. The basic scenario remains, however, that the question is postponed until later, “observes Michael Brown, analyst at Pepperstone.

At Wall Street Wednesday, the session ended on a contrasting note: the Dow Jones fell 0.4%, the S&P 500 of 0.1%, while the Nasdaq Composite increased by 0.2%.

In the United Kingdom. employers’ ftse 100 expected stable after confidence has reached its highest level for more than two years, according to data published by recruitment & employment Confederation. Confidence in the country’s economy is at -20 over the three months to the end of June. an increase of 15 points compared to the previous three months.

In Asia Thursday, the Nikkei 225 index in Tokyo increased by 1.1%. In China, the Shanghai Composite fell 1.0%, while Hang Seng in Hong Kong lost 1.5%. The S&P/ASX 200 index in Sydney ceded 0.2%.

The gold was exchanged at 3,295.70 USD on Thursday morning, against 3,292.75 USD the day before. The barrel of Brent fell to USD 72.22, against 72.99 USD.

On Thursday. Additionally, the British business calendar provides for the half-yearly Anglo American group results, the Bat tobacco manufacturer, the gold producer Endeavour Mining, the Haleon Consumer Products group, the London stock Exchange Exchange, the Rolls-Royce aeronautical group and the ftse 100 expected stable after Giant Petroleum Shell. The NEXT distributor must also publish an update on its activity.

Standard Charterd announced Thursday morning a new share buy -back program of USD 1.3 billion, after having published an increase in its quarterly results, carried by the good health of its wealth management activity.

The establishment also noted its dividend and revised its upward prospects.

The bank, oriented towards Asia, saw its profit before taxes climbing 44% over one year to 2.28 billion USD in the second quarter, exceeding the consensus of 1.73 billion USD established by the company. However, the net margin of interest fell over a year, from 2.03% to 1.98%.

On the macroeconomic level. the day will be punctuated by weekly registrations for unemployment, the PMI index of Chicago and figures for personal consumption expenditure in the United States. The consumer price index will also be published in Germany and France.

By Michael ftse 100 expected stable after Hennessey, journalist Alliance News

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