20/08/2024 Daily Reports
Asian stocks climbed, buoyed by optimism that the Federal Reserve is nearing a decision to cut interest rates.
The MSCI ACWI Index marked its longest run of gains since December, with Japan, South Korea, and Australia leading the advances, while Chinese shares dipped.
The positive momentum in Asia was driven by a strong performance on Wall Street, where the S&P 500 extended its winning streak.
Investors are eagerly anticipating the Fed’s upcoming decisions, particularly as the central bank’s Jackson Hole symposium approaches.
Meanwhile, gold surged to over $2,500 an ounce, reflecting expectations of an imminent rate cut.
Open A Live Account
CDO has wide range of tools, professional and friendly support for clients to achieve their financial markets trading goals. Open a live account now to enjoy this experience with virtual deposit.
The Australian and New Zealand dollars hovered near one-month highs, driven by expectations of a U.S. interest rate cut next month. Despite the Reserve Bank of Australia (RBA) indicating a near-term rate cut is unlikely, the Aussie dollar slipped slightly to $0.6718 after reaching a one-month high. Meanwhile, the kiwi dollar remained flat at $0.6117 after a strong overnight gain.
Both currencies are benefiting from a weaker U.S. dollar as markets anticipate the Federal Reserve will cut rates in September. Expectations for the RBA to be slower in easing rates have also supported the Aussie. Additionally, a rebound in iron ore prices, Australia’s key export, has provided further support for the Australian dollar, though the correlation between the two has weakened recently. Commonwealth Bank of Australia expects an RBA rate cut in November, citing slowing inflation and rising unemployment as key factors.
CDO TRADER
CDO TRADER, our cutting-edge trading platform, follows the technology from the forefront with new features added continuously. Moreover, CDO TRADER is now available for Android and iOS! So it allows you to trade on the go!
Global markets are riding high on expectations of dovish signals from Federal Reserve Chair Jerome Powell later this week. Asian shares hit a one-month peak, and stock futures point to a strong start in London and New York. Japan’s Nikkei also rose, despite a stronger yen.
The focus is on Powell’s upcoming speech at Jackson Hole, where markets are fully priced for a 25 basis point rate cut in September. Investors are watching closely for hints of a larger cut and insights into the U.S. economic outlook.
In Europe, Sweden’s central bank is expected to announce a quarter-point rate cut, with more cuts likely this year. Meanwhile, Canada’s inflation data is expected to support further rate reductions by the Bank of Canada. China, as anticipated, kept its lending rates unchanged, reflecting the limited room for further easing.
