Vienna's stock exchange experiencing stability as anticipation for US interest rate decision mounts
In the realm of global finance, anticipation is building as the focus shifts towards the US Federal Reserve. The Fed is expected to make a significant decision that could impact markets worldwide.
The expected decision is a rate cut, with analysts predicting a reduction of 25 basis points, bringing the key interest rate from 4.25–4.50% to 4.00–4.25%. This move is due to weaker inflation and slowing US labor market growth.
However, the ATX stock index is likely to react cautiously. The rate cut is widely anticipated, reducing the element of surprise and limiting immediate market impact.
Meanwhile, the Eurozone's inflation rate remains at the European Central Bank's target of 2.0 percent. This stability provides a contrast to the anticipation surrounding the Fed's decision.
In the domestic market, Erste Group is sparking activity with a 2.4 percent increase in its shares. On the other hand, RBI and BAWAG saw a 1.2 percent and 2.4 percent decrease, respectively. OMV and Andritz experienced a 0.9 percent and 1.6 percent decline in their shares, respectively.
The performance of Palfinger's shares is intriguing. Despite a raised price target from 40 to 43.4 euros, the company's shares fell by two percent. Analysts, however, reaffirmed their 'buy' recommendation for Palfinger.
The inflation rate in August reached 4.1 percent, the highest since March 2024. This rise could keep investors engaged in the coming days, along with the global stock market today expectations.
The key question remains: How will the ATX react to the Fed's actual decision? The answer to this question is eagerly awaited.
Elsewhere, Warburg Research reiterated its 'buy' recommendation for UBM, setting a price target of 34.60 euros. UBM's real estate developer shares rose by 1.9 percent as a result.
The 'dot plots' of Fed members indicate what interest rate level is deemed appropriate by the end of the year. The interest rate decision and the communication are crucial, as they will provide insights into the Fed's future monetary policy.
As the market awaits the Fed's decision, the global financial landscape remains a dynamic and engaging space to watch.
