Mixed Stock Markets: European, Asian and US Futures Trading Differently Amidst US Economic Uncertainty

European Stock Markets Mixed as US Futures Trading Positively

The global stock markets are experiencing mixed trends, with the Dax trading around base levels in Europe, the British FTSE up 0.3%, and the French CAC down 0.7%. In contrast, US futures are trading positively. Asian stock markets are also showing varied performance, with the Chinese stock markets closed for Labor Day, the Japanese Nikkei stable, the Hang Seng up by over 2%, and the Kospi index falling by 0.1%.

Investors on Wall Street experienced volatility last night following the Fed’s decision to keep interest rates unchanged. Chip stocks traded lower after disappointing reports from companies like AMD and Nvidia. However, Pfizer exceeded profit and revenue forecasts in the US reporting season, while other companies like CVS Health and Estee Lauder disappointed investors with weak forecasts. Tonight, Apple is expected to announce its financial results.

Government bond yields in the US are rising slightly after plunging sharply post-Fed’s interest rate decision. Oil prices also fluctuated, with a slight increase this morning. The Fed’s decision to keep interest rates unchanged reassured investors, with Chairman Powell emphasizing that further interest rate hikes are not on the agenda. He noted that inflation remains sensitive to economic risks but stressed that GDP data shows strong demand in the US. This reassurance from Powell helped ease concerns about the US economy and inflation for investors.