Global Markets Await Latest Fed Reserve Forecast

As the financial markets around the world wait for the latest monetary policy data and economic forecasts from the U.S. Federal Reserve, European stocks are expected to open somewhat on a positive note on Wednesday. In this anticipation, global markets are broadly in the green as anticipation is that the Fed will raise rates by a quarter-point, making it the first increase in four years.

Investors and market watchers are also eyeing the central bank announcement with its quarterly data that could hint at a few more hikes ahead. The Federal Reserve will release their decision at 2 PM ET on Wednesday, followed by a word from Chair Jerome Powell.

Meanwhile, the Russia-Ukraine war continues to impact financial markets and capture the attention of investors worldwide. In fact, Russia is due to settle $117 million in interest over Eurobonds this week, one of many payments the country owes. This brings up the issue of default over debt as a serious possibility. In parallel, the slew of international sanctions imposed on Russia’s central bank has frozen a large percentage of the country’s foreign currency reserves, putting the country in a tricky situation.

On the U.S. market, stock index futures were flat ahead of the Fed meeting. In Asia, however, stocks closed mostly higher, despite mixed signals coming out of mainland China due to the Covid surge. In Europe, most earnings come from E.on, retail giant Inditex, and BMW, as the International Energy Agency revealed the latest data from the fluttering oil market.