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All Eyes on the Fed: 5 Key Factors to Watch Out For in the Markets on Wednesday

Published 04/05/2022, 06:58
Updated 04/05/2022, 07:00
© Reuters.
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By Laura Sanchez

Investing.com - The U.S. Federal Reserve (Fed) will announce its interest rate decision today.

The European Central Bank (ECB) will also hold a non-monetary policy meeting.

The corporate earnings season is still in full swing.

Oil is trading lower.

Cryptocurrencies move lower this morning.

Here are the five factors investors should consider when making their decisions today:

1. All eyes on the Fed; ECB meeting (non-monetary policy)

This Wednesday, at 18:00 GMT, the Fed will announce its interest rate decision. A 50 basis point hike is expected.

We will also stay tuned for the press conference of Jerome Powell, chairman of the body, scheduled for 18:30 GMT.

On the other hand, the ECB holds a non-monetary policy meeting. It will be at 7:00 GMT.

2. Business results

The corporate earnings season continues. Today, Booking (NASDAQ:BKNG) and Volkswagen (ETR:VOWG), among others, present their quarterly figures.

3. Cryptocurrencies, on the decline

The cryptocurrency sector has dropped today. Bitcoin trades at around $38,000 and Ethereum at around $2,800.

4. Asia and the American stock market

Negative signs today in the main Asian indices. Hong Kong's Hang Seng falls 1.3%. The Nikkei and the Shanghai Composite remain closed for a holiday.

As for Wall Street, the market ended yesterday in the green. The S&P 500 (0.4%), Nasdaq (0.2%) and Dow Jones (0.2%) closed higher.

5. Macroeconomic data

The main macroeconomic references include German exports, imports and trade balance, the change in unemployment in Spain, the budget balance in France, as well as a series of composite and services PMIs in Spain, Italy, France, Germany and the Eurozone.

In the U.S., we will learn about imports, exports and trade balance, and crude oil inventories from the IEA.

Follow the day's events on our economic calendar: https://uk.investing.com/economic-calendar/

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