DAX Rises In Anticipation of Fed Rate Decision
The European stock markets are trading higher, while investors wait for another decision on monetary policy from the US Federal Reserve. The German DAX stock index has gained 0.44% to trade at 12.898 level.
Today’s data showed, that Eurozone industrial production fell by more than expected in April. Eurostat reported, that factory output decreased by 0.9% in April. Production of energy, durable and non-durable goods as well as intermediate goods fell in April. Analysts had expected a decline of 0.5%. In a separate release, Eurozone employment increased by 0.4% in Q1 compared with the final quarter of 2017.
The US Federal Reserve will publish its statement on monetary policy along with an updated set of economic forecasts by Federal Reserve official today. It is expected, that the US central bank will raise the target range for its benchmark interest rate by another 25 basis points to a new level of 1.75% -2%. Markets also expect any hints about further rate hikes from the Fed.
The European Central Bank will hold its policy meeting tomorrow. The ECB has clearly signaled that the end of its QE program is nearing as inflation and wages show increasing signs of normalizing. The running QE program of the ECB is expected to end in September. Some analysts suggest, that the ECB could make an announcement on Thursday whether to extend the program or allow it to expire as planned.