Rate Cut Financial News

Investing.com-- Most Asian currencies stuck to a tight range on Wednesday, while the dollar languished near five-month lows amid persistent bets that the Federal Reserve will begin cutting interest rates early in 2024. 

last week's gains of about three per cent after Houthi attacks on ships disrupted global shipping and trade while the Israel-Hamas conflict shows no sign of easing. Brent crude futures were up by $1.79, or 2.3 per cent, at $80.86 a barrel and earlier reached $81.23, the highest since December 1. US West Texas Intermediate crude rose by $1.89, or 2.6 per cent, to $75.45, according to news agency Reuters.

(Reuters) — U.S. stock index futures kicked off the last week of the year on a positive note on Tuesday as markets resumed trading after Christmas holidays amid strong expectations of early rate cuts by the Federal Reserve next year.

Investing.com-- Most Asian currencies moved in a tight range on Tuesday, while the dollar hovered near five-month lows as soft U.S. inflation data spurred increasing bets on interest rate cuts from the Federal Reserve in 2024. 

By Florence Tan

By Ankur Banerjee

Quiver Quantitative — The U.S. dollar is facing challenges in gaining momentum in the global currency markets, impacted by recent data indicating a cooling in U.S. inflation. This trend is fueling expectations that the Federal Reserve may ease interest rates in the coming year. Amidst the holiday season's thin trading, the euro and sterling showed marginal changes against the dollar, while the Australian and New Zealand dollars hovered near their five-month highs.

Oil prices were little changed on Tuesday as investors focused on geopolitical tensions in the Middle East and optimism the U.S. Federal Reserve would soon start cutting interest rates, lifting global economic growth and fuel demand. Brent crude futures fell 26 cents, or 0.3%, to $79.13 a barrel by 0115 GMT while U.S.

stocks traded tentatively on Tuesday, while the dollar lurked near a five-month low as cooling U.S. inflation bolstered bets the Federal Reserve would cut interest rates soon. Investors were still digesting data released on Friday that showed U.S. prices fell in November for the first time in more than 3-1/2 years, underscoring the economy's durability.

By Ann Saphir

Investing.com-- Most Asian stocks fell on Thursday as investors locked-in recent profits after a dovish Federal Reserve triggered a week-long rally, with Japan’s Nikkei 225 leading losses amid a deepening scandal involving the country’s biggest automakers.

Inflation in the U.K. as measured by the consumer prices index has eased back to its lowest level in more than two years

Morgan Stanley economists weighed in on the current market expectations of a 70% chance of rate cuts beginning in March 2024.

Bonds rallied and equities paused as a fresh batch of soft inflation data boosted the likelihood of interest-rate cuts, but also underscored the risk of an economic downturn.

European shares gained on Wednesday on rising bets of interest rate cuts following softer inflation data from the UK and Germany, while a rise in commodity prices lifted resource stocks. The pan-European STOXX 600 was up 0.3% by 0818 GMT, with energy and telecom sectors leading gains. Data showed German producer prices fell more than expected in November, while British inflation dropped way more than expected last month, with the headline rate falling to its September 2021 lows, strengthening the case for rate cuts. The German DAX was up 0.2%, while the UK's FTSE 100 jumped 1.3%. Energy shares rose 1.1%, while basic resources stocks gained 0.4% on higher prices of most commodities. Telefonica jumped 6.3% as the Spanish government is set to acquire around 10% stake in the telecoms giant. The broader sector was up 1%. Deutsche Post lost 1.3% after U.S.

By Stella Qiu

By Brigid Riley

Investing.com-- Gold prices fell slightly on Tuesday after several Federal Reserve officials downplayed expectations that a dovish pivot by the central bank was imminent, which helped stem recent losses in the dollar.

After keeping interest rates unchanged last week, the US Fed signaled its intention to begin reducing interest rates next year.

Abhay Agarwal, Founder & Fund Manager, Piper Serica, says “we are seeing a lot of investors both in India and internationally under allocated on the risk assets, They are actually “desperately” looking to put on positions, get to a fair level of allocations. That is why we are seeing in the markets that anybody who did the hard work, stayed invested, used the downturn in the market to deploy capital, is finally getting rewarded. So it is a great reminder from the markets for all investors.” What a week has it been for a very long time. We have been spoiled by such massive gains in such a short period of time. This kind of a market makes all of us feel that we are great stock pickers and great participants in the market, does it not? We have been investing for 30 years and I am again reminded that long-term investors should learn to ignore the general market perspectives and market wisdom because not much ago, there was a lot of caution, lot of worry about the markets Michael Burry was putting on a big short and people said look, he is a very smart guy who made billions shorting the market. Crude prices had gone up and there was a worry that the Fed will increase rates and a lot of investors got under allocated to the markets at that point of time.

U.S. stocks are poised to end 2023 on a high note amid investor optimism that the historic tightening of monetary policy is likely over, and interest rates will fall next year following a dovish pivot by the Federal Reserve.