Rate cut bets Financial News

Asian stocks were mixed on Thursday in the wake of record peaks on Wall Street as a softer read on U.S. services data boosted investor confidence in the Fed lowering interest rates. The S&P 500, Nasdaq and Dow all notched record highs overnight and bitcoin, at times a barometer of the mood, was back within a whisker of $100,000.

Bitcoin surged to a record high above $93,400, driven by market optimism over President-elect Donald Trump's pro-crypto stance and expectations of further interest rate cuts by the Federal Reserve. The rally was fuelled by data showing US consumer inflation rose to 2.6% in October, up from 2.4% in September, aligning with market expectations and strengthening the case for a potential 25-basis-point rate cut next month, with market odds rising from 59% to 83%.

cryptocurrency market experienced a notable surge on Thursday, buoyed by U.S. core inflation data that slightly exceeded expectations, diminishing hopes for a significant rate cut by the Federal Reserve next week. U.S. consumer prices edged up in August, with core inflation remaining somewhat persistent. The core Consumer Price Index (CPI) increased by 0.28% for the month, surpassing the anticipated 0.2% rise.

Many economists are expecting that July inflation data coming this week won’t dissuade the Bank of Canada from another interest rate cut at its next decision in September.

employment report for July raised expectations that the Federal Reserve will cut interest rates by 50 basis points in September as the economy sours. Employers added 114,000 jobs, below expectations for an increase of 175,000. The unemployment rate rose to 4.3%, above economists expectations that it would be unchanged on the month at 4.1%.

employment report for July raised expectations that the Federal Reserve will cut interest rates by 50 basis points in September as the economy sours. Employers added 114,000 jobs, below expectations for an increase of 175,000. The unemployment rate rose to 4.3%, above economists expectations that it would be unchanged on the month at 4.1%.

Nasdaq and the benchmark S&P 500 opened higher on Friday as a report closely watched by the Federal Reserve showed inflation moderating in line with expectations, strengthening hopes for early interest rate cuts this year. The Dow Jones Industrial Average fell 71.67 points, or 0.18%, at the open to 39,092.39. The S&P 500 opened higher by 5.61 points, or 0.10%, at 5,488.48, while the Nasdaq Composite gained 32.41 points, or 0.18%, to 17,891.10 at the opening bell.

Amazon.com Inc hit $2 trillion in market value for the first time on Wednesday, becoming the fifth U.S. company to surpass that level as optimism around artificial intelligence and potential interest rate cuts this year drove demand for technology-related stocks. The stock rose 3.4% to $192.70, giving the e-commerce giant a market value of over $2 trillion and putting it in the same club as technology heavyweights Microsoft Corp, Apple Inc, Nvidia Corp and Alphabet.

Gold prices were flat on Friday but were on track for their second straight weekly gain as weak economic data from the U.S. boosted expectations that the Federal Reserve would cut interest rates this year. FUNDAMENTALS

Gold and silver prices today on 28-05-2024: Check latest rates in your city“Gold is trading slightly lower on profit-booking after yesterday’s sharp up-move, as some caution is seen among traders ahead of the inflation data from Germany/ Eurozone and U.S., which could influence the policy decision of the European Central Bank and U.S. Fed, respectively.

investors pared expectations of a U.S. interest rate cut after the Federal Reserve's latest meeting indicated that a delay in monetary policy easing is likely. FUNDAMENTALS

A surprisingly strong April jobs report is likely to “raise eyebrows” at the Bank of Canada, with economists and markets split on when interest rate cuts could begin.

Asian shares made 15-month highs on Tuesday on renewed confidence of U.S. interest rate cuts, while traders waited on a policy meeting in Australia later in the day and had a close eye on a falling yen. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3% in early trade. Hong Kong shares traded marginally lower, having ridden a wave of heavy buying from mainland investors to lift the Hang Seng index more than 14% higher in a 10-day winning streak, its longest since 2018.

Gold prices edged up for a second session on Tuesday, after recent economic data boosted bets that the Federal Reserve would cut interest rates later this year.

dollar was broadly steady on Monday as data showing easing U.S. prices bolstered bets that the Federal Reserve could cut interest rates in June, while the yen loitered near 152 per dollar keeping traders on edge on the threat of intervention. The personal consumption expenditures (PCE) price index rose 0.3% in February, the Commerce Department's Bureau of Economic Analysis said on Friday, compared with the 0.4% rise that economists polled by Reuters had forecast.

interest rate cut in June took a hit after data over the week showed bubbling price pressures. Spot gold was little changed at $2,163.10 per ounce, as of 10:17 a.m. EDT (1417 GMT). Bullion was headed for a weekly drop of 0.6%, its first since mid-February after hitting a record high of $2,194.99 last week.

gold extended its stunning rally to the eighth day on Friday as the US nonfarm payroll report of February was weaker than expected. The metal rose to a fresh record high as it hit $2195 before closing with a gain of 0.89% at $2179. It posted a whooping weekly gain of 4.60%. The US employers added 275K jobs in February, which was above the forecast of 200K jobs; however, the unemployment rate rose to a two-year high of 3.90% from 3.70% in January and was way above the forecast of 3.70%. Moreover, the previous two-month figures were revised lower by 167K jobs and government hirings accounted for 52K jobs, which took the sheen off the headline number. Average hourly earnings m-o-m came in at 0.10% versus the forecast of 0.20%, while y-o-y earnings at 4.30% met the forecast though it was lower than the prior data of 4.40%. Labour force participation at 62.50% was lower than the estimate of 62.60%.

By Anjana Anil

By Anjana Anil and Ashitha Shivaprasad

Investing.com-- Gold prices moved little in Asian trade on Friday and remained well within a recently-established trading range amid increasing conviction that the Federal Reserve will not cut interest rates early in 2024.

By Joice Alves