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Markets Brace for Fed Decision, Tech Earnings in Packed 24-Hour Period
Global markets are facing a deluge of critical economic and corporate news over the next 24 hours, headlined by a key interest rate decision from the U.S. Federal Reserve. The busy day also includes a policy announcement from the Bank of Canada, quarterly earnings from technology bellwethers, and the UK's annual budget.
Central Banks Take Center Stage
The Federal Reserve is widely expected to deliver a "hawkish hold," keeping interest rates steady while signaling that another hike remains possible before the end of the year. According to a Reuters report, market focus will be on Fed Chair Kevin Warsh's commentary and the number of policymaker dissents, which could provide clues about the central bank's future path. The decision comes as the Fed grapples with inflation rates that are rising again while unemployment remains low.
In contrast, the Bank of Canada is expected to raise interest rates for the first time in three years. However, a potential cautionary signal came from the Reserve Bank of New Zealand, which unexpectedly held its rates steady overnight. The surprise decision sent the New Zealand dollar down more than 1%.
AdTech Earnings and Geopolitical Risks
After the market closes, investors will turn their attention to earnings from AI-focused tech giants Microsoft and Alphabet. Market sentiment for the sector was lifted overnight after South Korean chipmaker SK Hynix reported a tripling of its net profit, causing its shares to surge 10%.
Geopolitical tensions are also adding a layer of risk, particularly in energy markets. Brent crude continues to trade above $115 per barrel amid reports that the U.S. is considering resuming attacks on Iran after next week's midterm elections, according to Reuters. Meanwhile, Britain's annual budget is anticipated to be a low-impact event, with the finance minister having signaled no major changes to fiscal policy.
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