Thu, Mar 21st 2024
Swiss equities rise in anticipation of the US Federal Reserve’s rate decision.
In a market buoyed by anticipation, Swiss Equities experienced a modest uplift, closing 0.35% higher on Wednesday, claims a news wire.
This upswing in the Swiss Market Index was largely fuelled by investor optimism, with all eyes fixed on the forthcoming monetary policy decision by the US Federal Reserve.
The consensus among market watchers is a steady fed funds rate, projected to remain within the 5.25% to 5.50% bracket. However, the intrigue lies in the Federal Reserve’s forward guidance, particularly any signals regarding the timing of future rate adjustments.
ING analysts suggest, “The Federal Reserve is poised for a policy take a more neutral stance, contingent on cooperative economic indicators, potentially paving the way for rate reductions later in the year.”
Dutch financial giant posits a more assertive stance, anticipating a 125 basis point cut commencing in June, predicated on the current restrictive monetary environment.
Domestically, the Swiss National Bank (SNB) is on the cusp of revealing its inaugural interest rate verdict for the year. While a rate hold at 1.75% is widely anticipated, a faction of economists from leading institutions like Barclays, Citigroup, and Julius Baer speculate on a surprise rate reduction.
Bloomberg’s Maeva Cousin anticipates a cautious approach from the SNB, likely deferring any rate cuts till the June meeting, buoyed by a resilient Swiss economy.
In corporate developments, Swiss financial watchdog FINMA is set to intensify scrutiny over UBS Group with two comprehensive tests and forty onsite reviews planned for 2024.
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