European Stocks Near Record Highs Amid Fed Rate Cut Bets

European Stocks Near Record Highs Amid Fed Rate Cut Bets

VoM News Desk | May 16, 2024 | 04:07 PM IST | Breaking News | Follow on Google News

European Stocks Near Record Highs Amid Fed Rate Cut Bets

European Stocks Near Record Highs Amid Fed Rate Cut Bets

Key Highlights:

1. Stoxx 600 Index flat, MSCI All Country World Index rises for a fifth day.
2. Bloomberg’s dollar index hits one-month low, Treasuries advance.
3. US core CPI in-line with expectations eases inflation concerns, boosting risk appetite.

European stocks hovered near record highs on Thursday following US inflation data reinforcing expectations of Federal Reserve interest rate cuts this year.

The Stoxx 600 Index saw little change, while the MSCI All Country World Index extended its winning streak. Futures for the S&P 500 and Nasdaq 100 edged higher after setting new highs.

Investors anticipate policy easing as US core CPI meets expectations, alleviating fears of entrenched inflation. Federal Reserve Bank of Minneapolis President Neel Kashkari suggests keeping rates steady, questioning their impact on the US economy.

Later, investors await US unemployment benefit applications data for economic health signals. European Central Bank policymakers are expected to discuss three potential rate cuts for the year.

Individual stocks in Europe face challenges, with Ubisoft Entertainment and Siemens AG experiencing declines. In Asia, optimism surrounds Chinese developer shares amid potential policy support.

Commodities see copper reaching new records and oil rising for a second day on shrinking US stockpiles.

Source: Mint

VoM News Desk

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