Equities mixed after Fed held rates steady - 20.3.2025

The Dollar strengthening continues today. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, ended 0.2% higher on Wednesday.

EUR/USD reversed its advancing yesterday while GBP/USD slowed its climbing after the statistics agency Eurostat downgraded euro area inflation for February in its final report. Both Pound and euro are lower against the dollar currently. USD/JPY reversed its climbing and AUD/USD slowed its sliding on Wednesday with both the yen and the Australian dollar lower against the Greenback currently.

The US stock index futures are up currently ahead of unemployment benefits report at 13:30 CET. US stocks ended higher on Wednesday with the three main US stock benchmarks recording daily returns in a range from 0.9% to 1.4% as the Federal Reserve maintained its outlook that it will cut rates twice by December with rates falling to 3.75% to 4% in 2025.

European stock indexes are down currently ahead of the Bank of England interest rate decision at 13:00 CET today. The UK central bank is widely expected to hold its key interest rate steady at 4.5%. European stock indexes closed mixed yesterday. Asian stock indexes futures are mixed currently with Australia’s S&P/ASX 200 All Ordinaries index leading gains as softer than expected Australia employment data spurred expectations for an interest rate cut by the Reserve Bank of Australia.

Brent is extending gains presently. Prices resumed advancing on Wednesday as the Energy Information Administration (EIA) reported US crude oil stock rose by above expected 1.7 million barrels last week while distillate inventories, which include diesel and heating oil, fell by above expected 2.8 million barrels. The US oil benchmark West Texas Intermediate (WTI) futures rose 0.39% and are higher currently. Brent crude gained 0.3% to $70.78 a barrel on Wednesday.