Global Markets Today: Stock Indices Dip Amid Rate Cut Speculations- Check Details (image source: Canva)
Global Markets Today: Global shares experienced mixed trading on Monday, with investors eagerly awaiting further signals regarding potential interest rate cuts by the Federal Reserve.
US And European Markets
In early trading, France’s CAC 40 remained relatively stable at 8,151.94, while Germany’s DAX saw a slight uptick of 0.1 per cent to 18,227.53. The UK’s FTSE 100 saw minimal change, dipping less than 0.1 per cent to 7,929.84.
Futures for the S&P 500 and the Dow Jones Industrial Average showed a marginal decline of 0.1 per cent.
Asian Markets
Japan’s Nikkei 225 experienced a notable decline of 1.2 per cent, closing at 40,414.12, as investors opted to sell shares to lock in profits following recent record highs. Meanwhile, Hong Kong’s Hang Seng dropped 0.2 per cent to 16,473.64, and the Shanghai Composite fell by 0.7 per cent to 3,026.31.
China’s yuan was set at a rate of 7.0996 against the US dollar, with its official central parity rate determined by a weighted average of market maker prices before the interbank market opens each business day. The yuan had weakened to over 7.2282 against the dollar on Friday, reaching a four-month low.
Australian and South Korean Markets
Australia’s S&P/ASX 200 saw an increase of 0.5 per cent to 7,811.90, while South Korea’s Kospi experienced a slight decline of 0.4 per cent to 2,737.57.
Japanese Yen Movement
There were concerns expressed by a top Japanese finance official regarding the recent surge of the US dollar against the Japanese yen. The dollar’s rise to nearly 152 yen, from just over 130 yen a year ago, sparked speculation about potential market intervention. The euro strengthened against the dollar, trading at USD 1.0823.
Last week, the Bank of Japan raised a key interest rate for the first time in 17 years, albeit only slightly above zero. Despite this adjustment, borrowing rates in Japan remain below those in the US and other countries.
Federal Reserve Outlook
The US Federal Reserve has hinted at the possibility of three interest rate cuts this year, contingent upon cooling inflation. The Fed’s main interest rate is currently at its highest level since 2001.
In energy trading, benchmark US crude rose by 45 cents to USD 81.08 per barrel, while Brent crude, the international standard, increased by 48 cents to USD 85.91 per barrel.
