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IBEX Takes a Breather With Fed Doubt
IBEX Dips as Investors Await Fed Decision
The IBEX plunged amidst uncertainty surrounding the Federal Reserve's upcoming rate hike decision. The index shed 0.74%, marking its second consecutive session of losses.
Expectations Muted Amidst Economic Signals
The Fed is expected to announce a 25 basis point rate hike, but investors remain cautious due to recent economic data suggesting a slowdown in growth. Slowing global economic growth, rising inflation, and geopolitical risks are weighing on market sentiment.
The European Central Bank (ECB) also meets this week, with investors anticipating a more hawkish tone as the ECB battles persistent inflation in the eurozone.
Investor Jitters Dampen Market Sentiment
Investors remain on edge ahead of the Fed's announcement, with many expecting it to signal a more aggressive path of monetary tightening in the coming months. Concerns over the impact of higher rates on economic growth and corporate earnings have weighed on market sentiment.
Uncertainty Casts Shadow Over Market Direction
Until the Fed provides clarity on its future policy path, uncertainty is likely to persist in the markets. Investors are closely monitoring economic data and central bank statements for clues about the future direction of interest rates.
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