European markets opened mixed for a second day in a row, after investors were left clueless as trade talks in Shanghai concluded with no obvious progress nor official comments.
In addition, the flood of mixed corporate earnings hasn’t made it easy for traders to keep a clear view on where the stock markets are going. Samsung share price drifted lower after the company showed a sharp decline in profit whereas Apple went 4% up as the US tech giant topped projected revenue. Multiple automakers like Toyota, Honda, GM, Ferrari and BMW will be publishing their results later today and will provide investors with a better idea on where this sector is heading.
Photo by Medhat Dawoud.
For now, all eyes are focused on the FOMC meeting later in the day, where a 25-basis point cut is already priced in by the market. A surprise could come from a deeper cut as well as by the tone Jerome Powell will use for his press conference, as many traders will try to assess whether other cuts are in the pipeline. The stoxx-50 remains steady this morning and is struggling to recover the 3,465.0pts level after yesterday’s decline. The FTSE-100 is edging lower after a fall below 7,650.0pts but seems to have found support 100 points below towards 7,550.0pts. There is a good chance stock markets will remain quiet with no clear direction until the highly anticipated FOMC meeting tonight, ahead of next Friday’s job report.
