Top 5 Things to Know in the Market on Wednesday

Here are the top five things you need to know in financial markets on Wednesday, July 27:

1. Fed Decision: All Eyes on the Statement
As the Federal Reserve wraps up its two-day policy meeting at 18:00 GMT (2:00 PM ET) on Wednesday, investors are eagerly anticipating fresh insights regarding interest rate hikes over the coming months. Recent data that exceeded expectations has fueled speculation about the U.S. central bank’s next moves. Currently, interest rate futures suggest a 25.8% likelihood of a rate increase by September, with expectations for such a move rising from less than 20% a week ago and 9% at the beginning of the month.

2. Apple Surges on Earnings, Boeing and Coca-Cola Await Outcomes
Apple Inc. saw a 6% surge in pre-market trading on Wednesday following its impressive earnings announcement after the market closed on Tuesday. Other notable companies set to release their earnings include Boeing and Coca-Cola. Conversely, Twitter Inc. is expected to dampen sentiment in the tech sector, showing a decline of over 10% in pre-market trading.

3. Durable Goods and Crude Inventories on the Horizon
Market participants are looking forward to the release of durable goods data for June at 12:30 GMT (8:30 AM ET), which is seen as an important gauge for the U.S. economy ahead of the Fed’s decision. Additionally, crude oil inventory data will be published at 14:00 GMT (10:00 AM ET), while traders keenly await the U.S. Energy Information Administration’s report on inventories due at 14:30 GMT (10:30 AM ET), with expectations of a decline of 2.3 million barrels.

4. U.K. Pre-Brexit Growth Exceeds Forecasts
The U.K.’s GDP growth for the second quarter surpassed expectations, registering an increase of 0.6%, compared to forecasts of 0.4%. This data marks the final growth measure prior to the country’s June 23 referendum, which resulted in the decision to leave the European Union. Economists are now predicting a contraction of 0.1% for the third quarter. This data comes before the release of U.S. economic data for April to June, which is expected on Friday.

5. Yen Declines Amid Stimulus Talks and BoJ Expectations
The yen fell on Wednesday following reports that Prime Minister Shinzo Abe’s government is expected to unveil a significant stimulus package to boost Japan’s struggling economy, potentially exceeding earlier projections of around 20 trillion yen. As market participants prepare for the upcoming Bank of Japan meeting later this week, there are speculations about the central bank’s policy adjustments.