Milan Expectations for the Federal Reserve to cut monetary policy remain at the heart of the market, with optimism that this will happen after the holiday break. Jerome Powell He had recently expressed a desire to have more confidence that inflation was falling, and then data showed price increases slowing more than expected. However, the governor ruled out giving a timetable for the cuts, and there was no shortage of people like Kugler who advocated waiting until later in the year.
Not even Warning International Monetary Fund The geopolitical context, raw materials, inflation potential resilience from rising wages (especially in the services sector) have influenced the market in the last few hours. Indeed, as pointed out Bloomberg The feeling of “adventure”, i.e. the appetite for risk, can be demonstrated by the rotation of purchases Wall Street In recent trading sessions, smaller companies, which are most sensitive to debt costs (and therefore benefit most from falling interest rates), have been rewarded: It’s no coincidence that the Russell 2000 index is up 12% in the past five trading sessions.
Market awaits todayEurozone inflationand then they move on to consider the possibility of a Trump White House. The inevitable result of this will be a tightening of business positions, according to Goldman Sachs This could cost the eurozone a percentage point of GDP. But in these meetings, it was Asia that suffered first.
HSBC has named Chief Financial Officer Georges Elhedery as the bank’s next chief executive to lead “the next phase of development and growth.” “I am delighted to confirm George as the next chief executive of HSBC Group,” group president Mark Tucker said in a statement to the Hong Kong Stock Exchange. Elhedery will take over on September 2 from current CEO Noel Quinn, who announced he would retire in April.
Wall Street futures were weak and mixed despite a positive overnight close supported by better-than-expected U.S. retail sales data and a series of mostly upbeat quarterly earnings from companies. Growing expectations for a September rate cut by the Federal Reserve prompted traders to turn to more economically sensitive sectors and abandon technology stocks. The Dow Jones rose 0.03%, the Nasdaq fell 0.42% and the S&P 500 fell 0.20%
Despite a positive close on Wall Street, major Asian stock markets fell. Growing expectations that Donald Trump will return to the White House contrast with renewed hopes that the Federal Reserve will cut interest rates at least once this year. Although inflation in the United States is slowing, the International Monetary Fund said in its World Economic Outlook update that inflation remains sticky and could still cause adverse effects. However, some economists warned that the Fed waited too long. In addition, US retail sales data beat expectations, leading observers to upgrade their economic growth outlook. Tokyo fell 0.36%, Hong Kong fell 0.22% as technology stocks fell further, and Shanghai fell 0.57%, awaiting Chinese leaders to take measures to revive the economy. Seoul fell 0.60% and Taipei also slipped in the rankings as Donald Trump’s commitment to Taiwan’s defense appeared cool.