Review:
The index came after the previous day’s heavy losses also on yesterday’s Tuesday under selling pressure and slipped to 13,300 points. In after-hours trading, it even went as low as 13,220 points, a good 1,500 points (!) below the previous week’s high. The market now expects the U.S. Federal Reserve to raise interest rates by 75 basis points in the evening.
Outlook:
In the run-up to the U.S. interest rate decision in the evening, the index can recover significantly in the morning. The reason for this is the ECB’s announcement that it intends to deal with the small bond crash in Italy & Co. at an extraordinary meeting after all. The event of the day comes in after-hours trading: At 8 p.m., the FOMC interest rate decision is due and at 8:30 p.m. Jerome Powell will answer reporters’ questions about his monetary policy at the press conference. In the run-up, the past few days have already been properly priced in (sold…) – a major recovery rally into the 13,700 to 13,800 points range (gap closing…) would therefore not be a big surprise.
