Rate Cut Financial News

The euro retreated and stocks climbed as decelerating European inflation added fuel to broader rate-cut expectations that have spurred a global rally in assets this month. 

Gold steadied after hitting the highest since May, as comments from Federal Reserve officials bolstered bets that policymakers will start cutting interest rates next year.

Bitcoin climbed back above $38,000 on Tuesday amid optimism the US central bank may be closer to lowering borrowing costs if inflation continues to decline. The largest cryptocurrency by market value gained as much as 3.3% to $38,264 before trimming the increase. Bitcoin reached an 18-month high of $38,422 on Friday. Lower rates generally increase investors’ appetite for riskier assets such as digital tokens. “As rates reverse, investors will return to risk assets in search of better returns,” said Michael Safai, partner at quantitative trading firm Dexterity Capital. “This, coupled with the momentum that crypto has built in recent months with ETFs and putting FTX in the rear-view mirror, has traders feeling like the conditions for a new bull run are coming together.” Federal Reserve Governor Christopher Waller said he’s encouraged by a recent slowing of economic activity, which may indicate the central bank’s policy is tight enough. He made the comments as part of prepared remarks Tuesday for an event at the American Enterprise Institute in Washington.

Gold prices touched a nearly seven-month high on Wednesday propelled by an extended decline in the U.S. dollar and bond yields as markets grew confident that the Federal Reserve would likely cut rates by the first half of next year. FUNDAMENTALS * Spot gold rose 0.3% to $2,047.21 per ounce by 0236 GMT. * U.S.

Bill Ackman is betting the United States Federal Reserve will begin cutting interest rates sooner than markets are predicting. The Pershing Square Capital Management founder said such a move could happen as soon as the first quarter. Traders are fully pricing in a rate cut in June, with the chance of a cut happening in May priced at about 80%, according to swaps market data.

A key Federal Reserve official raised the possibility that the Fed could decide to cut its benchmark interest rate as early as spring if inflation keeps declining steadily

artificial intelligence stocks saw investors pouring money after six straight weeks of outflows, on the backdrop of strong quarterly results by chipmaker Nvidia and rising optimism that US interest rates have peaked. The Global X Robotics & Artificial Intelligence ETF received $35.5 million in net inflows in the week ending on Wednesday, its strongest since June earlier this year, according to Lipper data.

US Federal Reserve officials at their latest policy meeting agreed to “proceed carefully" and only raise interest rates if progress in controlling inflation faltered. The minutes of the October 31 - November 1 Federal Open Market Committee (FOMC) meeting release on Tuesday showed that the committee was emphasizing on how higher interest rates were starting to squeeze households and businesses.

Investing.com-- Most Asian currencies moved little on Friday after strong gains earlier this week, while the dollar headed for a sharp weekly fall as weak labor market data fueled more bets that the Federal Reserve will trim interest rates by mid-2024. 

By Kevin Buckland

China continues to battle its property demons while it is Italy's turn to be in the eye of the ratings agencies. Here is your week-ahead primer from Lewis Krauskopf in New York, Kevin Buckland in Tokyo, Danilo Masoni in Milan and Alun John and Dhara Ranasinghe in London. 1/ INFLATION WATCH A slew of Federal Reserve policymakers including boss Jerome Powell say they are still not sure that rates are high enough to finish the battle with inflation. Traders, anticipating roughly three quarter-point Fed rate cuts next year, will now turn their attention to Tuesday's inflation data to confirm their view on the outlook. The October consumer price index is expected to have climbed 0.1% on a monthly basis, according to a Reuters poll. September's CPI rose 0.4% on a surprise surge in rental costs, but also showed a moderation in underlying inflation pressures. A sharper cooling could fan the peak rate talk, fuelled by October's employment report, which pointed to an easing in labor markets. A federal government shutdown meanwhile looms if lawmakers in Washington are unable to pass a measure to at least temporarily fund operations before a Nov.

Canada’s inflation rate cooled more than expected in September to an annual pace of 3.8 per cent in a broad-based easing that economists say should give the Bank of Canada reason to hold interest rates when it meets next week.

Aman Soni, Head of Operations at Prudent Equity. He says investors should consider maintaining some unallocated capital that can be readily deployed when lucrative opportunities arise. Moreover, he finds attempting to predict whether a rate cut will occur in the first or second half of 2024 a futile exercise.

(Reuters) — Goldman Sachs economists said they now expect the U.S. Federal Reserve to begin its interest rate-cutting cycle in the fourth quarter of next year, later than an earlier forecast of a cut in the second quarter.

BEIJING — China's National Bureau of Statistics was set Friday to release economic data for August, a day after a surprise rate cut to aid its faltering economy.

“We believe that the Fed might take a pause in the September meeting and continue to remain data dependent,” says Devang Shah, Co-Head Fixed Income, Axis Mutual Fund. In an interview with ETMarkets, Shah, said: “Expectations of a slowdown have now been pushed towards the next year given the strong macroeconomic picture and markets now expect interest rates to remain elevated. The RBI may consider a rate cut cycle in April – June 2024” Edited excerpts:The market seems to be finding some resistance at higher levels – What is your take on markets at current?Considering the growth inflation dynamics, we believe that we have already seen the peak of the growth cycle and the near-term peak on inflation. A large part of the first half of government borrowing is behind us.

India’s real estate sector is poised for remarkable growth, projected to reach a value of US$ 1 trillion by 2030 and contribute 13% to the GDP by 2025, as per the IBEF report. The rebound in 2022, with a 68% surge in home sales across the top eight cities, underlines a resilient comeback. Post-COVID, the sector emerges as a significant job creator, offering diverse opportunities and aiding economic recovery. Amid these dynamics, the pivotal role of repo rates comes to attention.

The valuations of the Indian stock market are currently higher than they usually are in the long run. This means there might be a correction soon. If you're thinking about investing in stocks in the short term, it's a good idea to lower your expectations. However, if you're planning to invest for the long term, sticking with your regular investments (SIPs) is still a good choice, said Ajay Tyagi, the head of equity and fund manager at UTI AMC. In an interview with Mint, Tyagi talked about which sectors can perform better going ahead and what is the road ahead for mid and small-caps. Monsoons in August have been the worst in a century and as a result, the overall rains for this year would be sub-optimal.

The governor of Poland’s central bank says its large interest rate cut is justified despite high inflation because prices are stabilizing and the era of high inflation is ending

Dhiraj Nim, Economist/FX Strategist, ANZ Research, says “the rupee could remain in a tight range of about 82.80, 82.90 to 83.10, the recent lows that have been established. My own forecast for September end is 83 per dollar, but there are a couple of more headwinds out there, apart from the dollar strength, namely the crude oil prices, which have surprised everybody on the upside. The rupee in near term could maintain a bit of weakening bias but we expect the RBI to remain present in the market to smooth out any volatility.”The dollar index has seen quite a bit of surge and is already very close to that 105 mark. Do you see more strength there? Our house view is that the dollar index could be at 105 by the end of this quarter. So, at least in the near term, we do not see significant upside, but let us be mindful that 105 is not a very easy level for any currencies in the emerging market space.

BOGOTA (Reuters) — Colombia's government and industry associations called on the central bank to lower interest rates on Monday and urged business leaders to resume investment decisions, in a bid to shore up the economy.