Fed keeps tightening option alive
The DAX is expected to open modestly lower after the Federal Reserve left interest rates unchanged but stopped short of ruling out further monetary tightening.
While policymakers kept the federal funds rate on hold, they reiterated that inflation remains under close scrutiny and warned that higher energy prices continue to pose upside risks to the inflation outlook. The 9–3 voting split against a rate hike also attracted attention, highlighting that the prospect of a more restrictive policy stance in the coming months remains firmly on the table.
Meta and Microsoft deliver mixed signals
Corporate earnings painted a mixed picture overnight. Meta Platforms and Microsoft delivered sharply contrasting results.
At Meta, soaring investment and operating costs weighed on profitability as the company continues to aggressively expand its AI capabilities regardless of expense. Investors responded negatively to the elevated spending trajectory.
By contrast, Microsoft impressed with another strong performance in its cloud business, providing reassurance to investors who had become increasingly cautious in recent weeks. Similar to SAP, the software giant appears to have overcome an overly pessimistic market narrative.
Asian markets show signs of stabilisation
Asian equity markets showed early signs of stabilisation in response.
Strong quarterly results from Samsung Electronics also supported sentiment across South Korea and Japan, helping technology shares recover after recent weakness.
