Following the Fed’s widely anticipated 25-basis-point rate cut yesterday, the first since December 2024, markets reacted with initial caution, as the S&P 500 closed slightly lower amid questions about the pace of future easing. The Fed’s “dot plot” projections indicated two additional cuts by year-end 2025, aligning with expectations but signalling a cautious approach due […]
Gold declined despite a dovish Fed Read More »
Crypto, FTSE 100, Gold, S&P 500The S&P 500 recently closed above 6,600 for the first time, but sentiment is mixed as investors await the Fed’s interest rate decision. The Fed is expected to announce a 25 basis point rate cut today. Markets will be watching how dovish the Fed is, what its forward guidance says, how many cuts are anticipated
U.S. interest rate decision Read More »
FTSE 100, S&P 500, Stocks and SharesRecent earnings have reinforced the strength of leading technology and AI-focused companies, pushing their stocks higher and keeping markets near record levels. The excitement is understandable—AI has the potential to transform industries in ways similar to the internet revolution of the late 1990s. Back then, investors rushed to buy into the “new economy,” and while
Stock markets are cautious with futures holding near record levels as investors wait for this week’s Federal Reserve decision on interest rates. Investors remain optimistic, but volatility may increase due to macroeconomic risks and anticipation of a possible rate cut. In the UK, bond markets and gilts will be watched closely amid concerns about borrowing
Cautious start to the week Read More »
BondsU.S. inflation and employment market signals suggest the Fed is very likely to cut interest rates at its meeting next week. The U.S. Consumer Price Index (CPI) data for August came in at 2.9% year-over-year, with core inflation (excluding volatile food & energy) steady at 3.1% y/y. These readings are higher than the Fed’s 2%
U.S. CPI as expected Read More »
InflationYesterday, U.S. Producer Price Index (PPI) came in lower than expected, easing fears of runaway inflation and bolstering expectations that the Fed could begin cutting interest rates. The market now anticipates possibly multiple cuts before year-end. The market is now awaiting August Consumer Price Index (CPI), scheduled for release at 1.30pm today; these figures may
S&P 500 at record highs, CPI is next Read More »
FTSE 100, S&P 500Investor sentiment is bearish overall, with caution stemming from deteriorating labour market conditions, volatility in bond yields, and fiscal uncertainties. Weak U.S. employment data has bolstered bets for a Fed rate cut. The nonfarm payrolls report showed only 22,000 jobs added in August and an unemployment rate rising to 4.3%. Bond yields declined which is
As yields pull back, gold surges to new highs Read More »
Bonds, GoldThe weak job report from yesterday, which showed only 22,000 jobs added in August and an unemployment rate rising to 4.3%, has pushed consensus among analysts and financial markets that the Federal Reserve should and likely will cut interest rates at its next meeting later this month. Financial markets are now pricing a near-certainty (97–100%
Markets are showing a positive tone heading into today, largely fuelled by expectations that upcoming jobs data may finally justify interest rate cuts by the Federal Reserve as soon as mid-September. The US nonfarm payrolls is expected at 1.30pm, a weak report would increase the odds of a rate cut in September. The consensus among
Outlook for today: US jobs report Read More »
FTSE 100, S&P 500Futures show indecisiveness, hovering around the flatline as investors await key labour market data, which could solidify expectations for a Federal Reserve rate cut at its September meeting. Alphabet soared 9.1% on favourable antitrust developments, and Apple jumped 3.8% providing upward momentum to the Nasdaq and broader indices. But bond yields remain elevated and could
Goldman Sachs warning Read More »
Bonds, Inflation