European Stocks Open Higher, Market Focus on the Fed Amid Iran Risks
European stocks opened higher on Wednesday (March 18), with the Stoxx 600 index rising 0.4% shortly after the open, as most sectors and major bourses moved in positive territory. However, market participants continued to place the impact of the Iran war as the primary focus ahead of the US Federal Reserve's policy decision.
At the issuer level, Diploma shares surged 16% after the company raised its full-year outlook, including a revised organic revenue growth target of 9% from 6% and an increase in operating profit consensus of around 13%. Softcat also rallied 6.3% after posting strong fiscal half-year performance and raising its full-year core operating profit growth guidance to high single digits.
In energy markets, oil prices fell in the morning but held above US$100, with rising US crude inventories helping to contain geopolitical risk premiums. President Donald Trump again highlighted the issue of securing the Strait of Hormuz, criticizing NATO allies for their reluctance to help, although later stating that the US did not need assistance.
Today's main focus is on the Fed's interest rate decision, which is expected to maintain the 3.5%–3.75% range. The market will be closely monitoring Jerome Powell's guidance on how the oil surge could influence future policy direction. In Europe, attention continues to be focused on the EU inflation release ahead of a series of central bank decisions on Thursday, including those by the ECB, the Bank of England, the Riksbank, and the SNB. (alg)
Source: Newsmaker.id
