Global markets are resilient on Wednesday ahead of the FOMC, despite the escalating situation in Russia and Ukraine.
Heading into the European afternoon session, the DAX 30 is up 0.41% at 9,281.10. Leading the way is semiconductor developer and manufacturer Infineon Technologies AG (IFX.DE), up 1.25% at 8.37 on a rating reaffirmation.
The Euro Stoxx 50 is up 0.26%, currently trading just ahead of strong 2013 support at 3,081.34. Frontrunner Bayerische Motoren Werke Aktiengesellschaft (BMW.DE) is up 6.88% at 86.30, with the household name car manufacturer announcing better than expected pretax profit of 7.91 billion euros (£6.61 billion).
Across the Atlantic, the Dow Jones Industrial Average is up 0.13% on the day’s open, currently trading at 16,358.16. While still early, the day’s top mover is currently UnitedHealth Group Incorporated (UNH). The health and wellbeing organization is up 1.22%, trading at 78.96 on an announcement that it will be expanding its operations in the near future. Similarly, the S&P 500 is up 0.08%, currently trading at 1,873.81, just shy of early-march all-time highs.**relatedarticle**
The positive US markets come as the Bureau of Economic Analysis reports a lower than expected current account deficit, coming in at -81.1B versus a forecast of -88.0B and a previous result at -96.4B. All eyes now are on the FOMC statement, the rate decision and Janet Yellen’s speech, the first two scheduled for 18:00 GMT and the latter for 18:30 GMT, as traders and investors look for insight into the future of US economic policy.
The bullish sentiment is somewhat counterintuitive, as the death of a military official in Crimea and Putin’s official signing of the Russia-Crimea treaty suggest an escalating situation in Eastern Europe. There will likely come a point during the week at which traders and investors turn risk-averse, and reduce the exposure they carry into the weekend. Whether this sentiment switch will be enough to put a dampener on the bullish momentum across the global markets on Wednesday, remains to be seen.
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