Asian stocks rose along with US equity futures on expectations the Federal Reserve’s half-percentage-point interest-rate cut will guide the world’s largest economy toward a so-called soft landing. Japan’s markets led gains in Asia, with an MSCI gauge of regional equities climbing by the most in a week. US stock futures also rallied in Asian trading after the S&P 500 Index closed 0.3% lower in the aftermath of the Fed’s announcement Wednesday. Treasuries fell on bets the aggressive move to start the cutting cycle will mean the Fed will need to lower interest rates less in the long run. Chair Jerome Powell himself cautioned against assuming big cuts would continue and signaled borrowing costs may need to remain higher than pre-pandemic norms. The Fed’s move is reinforcing expectations that the US economy will avoid a downturn, and cemented wagers that policy makers won’t be in a rush to deliver further easing — a stance that’s likely to underpin the dollar in the coming days. An overwhelming majority in a survey of Bloomberg Terminal subscribers expects a soft landing for the world’s largest economy, with 75% forecasting that it will avoid a technical recession by the end of next year. The Fed’s first reduction in more than four years was accompanied by projections indicating an additional 50 basis points of cuts across the remaining two policy meetings this year. Powell said launching the unwind of the central bank’s historic tightening campaign with a big move while the US economy is still strong would help limit the chances of a downturn. An index of dollar strength slipped after a two-day gain, while the yen weakened to trade at around 143 per greenback. At a decision on Friday, Bank of Japan Governor Kazuo Ueda faces the delicate task of making sure investors are firmly aware of interest-rate hikes to come without ruffling markets even as he stands pat on policy. In Asia, Singapore stocks were on track for their highest close since 2007 as the prospect of lower interest rates lifted the city-state’s real estate investment trusts, and added to the appeal of the high-yielding market. The Hong Kong Monetary Authority lowered its base interest rate for the first time in four years following the Fed’s cut, while New Zealand’s economy shrank in the second quarter. HSBC Holdings Plc reduced its key benchmark rate in Hong Kong for the first time since 2019, a move likely to hit margins while bringing relief to homeowners and borrowers in the Asian financial hub.
Elsewhere, the Bank of England is likely to refrain from cutting rates for a second consecutive meeting on Thursday, maintaining a patient approach to reversing the most aggressive policy tightening in decades. Governor Andrew Bailey may provide investors more hints that the central bank will cut rates again in November. Gold nudged higher following a tumultuous session in which it touched a record high after the Fed rate cut. Oil was steady as investors weighed signs of weak US demand against the Fed’s rate cut and escalating tensions in the Middle East. US After Hours PGNY -23.3% after losing significant client; SCS -10.2% lower on earnings; PLTK +2.9% to acquire SuperPlay.
Nikkei +2.33% Hang Seng +1.83% CSI +0.88% Shanghai +0.74% Shenzen +1.67%
Eur$ 1.1126 CNH 7.0726 CNY 7.0722 JPY 142.74 GBP 1.3219 CHF 0.8478 RUB 92.7836 TRY 34.0631 WTI$ 71 +0.13% Gold 2,572 +0.50% BTC 61,997 +2.92% ETH 2,410 +3.60%
S&P +0.97% Nasdaq +1.44% EuroStoxx +1.01% FTSE +0.80% Dax +0.78% SMI +0.67%
Macro :
- Europe Carmakers Call for ‘Urgent Action’ as Emission Rules Loom
- Spain Could See More Than 20 IPOs This Year, Says SIX: ECM Watch
- Spain Could See More Than 20 IPOs This Year, Says SIX: ECM Watch
- Gensler Says AI Risks Heartbreak Like Scarlett Johansson’s ‘Her’
- Gundlach Says Fed Has Potential to Cut by 50 BP After Election
- Companies Warn Europe 'Risks Falling Further Behind' in AI Era in Open Letter -- WSJ
- Germany’s Slump in EV Sales Drags on Europe’s Auto Market
- Bitcoin Climbs With US Equity Futures as Traders Digest Fed Cut
Keep an eye on :
- AGK LN : TDR, I Squared Capital Said to Consider $10 Billion Aggreko Exit
Keep an eye on :
- AGK LN : TDR, I Squared Capital Said to Consider $10 Billion Aggreko Exit
- AOX GY : Alstria Office Says Brookfield Made Squeeze-Out Demand
- BAB LN : Babcock Says Performance is in Line With Expectations
- BSLN SW : Basilea Enters Funding Pact with US Barda, Raises FY Guidance
- BioAge IPO : Obesity Drugmaker BioAge Seeks $158 Million in IPO, Placement
- BP/ LN : Plug Power to Supply Electrolyzers to BP/Iberdrola JV
- BA US : Boeing, Union Talks End With No Deal, No Added Dates Scheduled
- BA US : CDB Leasing to Buy 50 Boeing Max Jets in Second Major Order
- BN CN : Brookfield to Add to its $13 Billion Bet on India Infrastructure
- CAL LN : NewRiver May Buy Capital & Regional at 62.5P/Share Implied Value
- CPR IM : Lagfin Intends to Buy up to EU100M Campari Ordinary Shares
- CBG LN : Close Brothers FY Net Interest Margin Misses Estimates
- CBK GY : Commerzbank Still Isn’t Right for Deutsche Bank: Paul J. Davies
- CVC NA : Advent, CVC Make Bids for Stake in Gruppo San Donato: Corriere
- DSV DC : CVC Says Willing to Bump DB Schenker Bid After Losing to DSV
- EQT SS : Grant Thornton US Among Bidders for Grant Thornton UK Stake: FT
- EQT SS : EQT to Sell Open Systems to Swiss Post; Terms Undisclosed
- GAL PL : Portugal’s ENSE Says Gasoline Consumption Rose 7.6% in August
- HESM US : GIP Is Said to Offer Hess Midstream Shares For Up to $36.15 Each
- IBE SM : Plug Power to Supply Electrolyzers to BP/Iberdrola JV
- IFA1V FH : Onni Bidco Completes Innofactor Tender Offer With 81% of Shares
- NANO FP : Provides Business Update and Reports Half Yr 2024 Fincl Results
- NRG FP : NRJ Challenges French Regulator Decision on TV Frequency Picks
- NRR LN : NewRiver Offers 62.7m Shares to Fund Capital & Regional Offer
- RECSI NO : REC Silicon, Sila Sign Multiyear Silane Gas Supply Pact
- ROG SW : Roche Says New Data Shows Xofluza Reduces Transmission of Flu
- OCDO LN : Ocado 3Q Retail Sales Beats Estimates
- ORCL US : Oracle-Backed Chip Designer Ampere Is Said to Explore Sale
- S30 FP : Solutions 30 1H Adjusted Ebitda EU37.7M Vs. EU27.5M Y/y
- S30 FP : Solutions 30’s Unit-T Renews Partnership With Telenet
- UCG IM : "We can also sell the Commerzbank shares again"
- X US : White House: Don't know of any delay or extension of the review process for Nippon Steel's proposed US Steel acquisition, the process is ongoing
- VST US : Vistra to Become Sole Owner of Vistra Vision Unit in $3.25b Deal
- VNA GY : Vonovia, Deutsche Wohnen in Talks for Domination Transfer Pact
- VOW GY : Europe Carmakers Call for ‘Urgent Action’ as Emission Rules Loom
- WCH GY : Wacker Confirms Targets, to Expand Specialty Products Portfolio