Global Markets Strong Ahead Of FOMC Statement

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Global Markets Strong Ahead Of FOMC Statement

Global Markets Strong Ahead Of FOMC Statement

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.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com