Wall Street falls on eve of Fed decision, Brent slips from highs

Data on Wall Street’s close currently come from a single source (Cicli e Asc Trading); no independent confirmation is available. According to this source, the New York stock exchange closed lower for the second consecutive session on the eve of the Federal Reserve’s announcement.

Index	Change
Dow Jones	-0.63%
S&P 500	-0.45%
Nasdaq	-0.78%

The 10-year Treasury yield temporarily topped 5%, a level the source describes as the highest since 2007. The market assigns more than 90% probability to a 25-basis-point increase in the Fed’s rates, which would be the first hike in over three years. At 8:30 p.m., U.S. time, a press conference by Fed Chair Kevin Warsh is scheduled.

In Europe the picture appears different. According to MilanoFinanza and Borse.it, European stock markets opened with cautious optimism, focusing on the Federal Reserve’s imminent decisions. The Ftse Mib rose above 51,900 points during the session, driven by utilities, with Stm and Prysmian among the standout stocks on Piazza Affari.

On the commodities front, Brent crude fell to around $107.73 a barrel, retreating from recent levels. Available sources do not specify the causes of the decline. Gold and silver, by contrast, recovered ground in the same session.

Available sources do not specify what the immediate impact on European markets will be should the Fed confirm the hike expected by operators, nor whether Warsh’s press conference, scheduled for the evening, might provide indications on future rates beyond the decision itself. It remains to be seen how Asian markets, which will open before the Fed’s statement is released, will react to the uncertainty over rates.