
On Tuesday, US stocks rose modestly as oil prices stabilized, with WTI around $96 and Brent below $103. Stock futures rose further in early trading today as oil price dropped further. Sharp build in U.S. crude inventories helped offset geopolitical tensions in the Middle East.
The Federal Reserve is widely expected to keep interest rates unchanged today, maintaining the range at 3.5%–3.75%, as it navigates a complex mix of geopolitical tensions, inflation risks, and mixed labor market signals. Markets see almost no chance of a near-term rate cut, with easing now expected only later in the year, likely around September or October.
Investors are also watching upcoming inflation data and earnings.
Gold edged lower but remained range-bound during the Asian session as traders awaited the Federal Reserve decision. The precious metal is currently trading below $5,000 an ounce, with silver also sliding below $80.
Rising inflation concerns have reduced expectations for rate cuts, supporting the U.S. dollar and weighing on gold.
In the Forex market, EURUSD edged slightly lower near 1.1530 during Asian trading, with limited movement as investors remained cautious ahead of the Federal Reserve decision.
Meanwhile, the European Central Bank (ECB) is also expected to hold rates steady, though rising energy prices have shifted expectations, with markets now pricing in a potential rate hike later this year.
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