Traders are considering the possibility that Fed policy makers will deliver a smaller-than-expected 50-basis-point rate hike next week, instead of the widely expected 75-basis-point increase. The chance of a half-point hike was as high as 11% on Thursday, up from 1.6% a week ago. Meanwhile, the likelihood of a 75-basis-point hike has dropped to 89%, down from 98% on Oct. 20, according to the CME FedWatch Tool. The scenario of a less aggressive move comes after what observers perceived as a dovish tone in the European Central Bank’s rate outlook on Thursday, and Wednesday’s smaller-than-expected rate hike by the Bank of Canada. The fed funds rate target currently sits between 3% and 3.25% after three straight 75-basis point hikes.
DE 40 forecast: the index resumed growth after correction
The DE 40 stock index continues to recover after the correction, with the uptrend remaining intact. The DE 40 forecast for today is positive. DE