Markets Surge Amid Middle East Ceasefire and Fed Rate Speculation
Shanghai and Hong Kong stocks hit significant highs following a ceasefire between Israel and Iran, sparking hopes of an earlier U.S. rate cut. Shanghai's index topped six-month records while Hong Kong shared in the rally. Analysts track U.S. monetary policy as Fed Chair Powell hints at potential rate adjustments.
Stocks in Shanghai soared to a more-than-six-month high as trading concluded on Wednesday, while Hong Kong markets peaked since March, buoyed by an unexpected ceasefire between Israel and Iran. Analysts are optimistic about the potential for an early U.S. Federal Reserve rate cut.
The ceasefire, brokered by U.S. President Donald Trump, seems to be holding, with both nations backing down from recent hostilities. Financial markets are hopeful this detente will persist, bolstering economic confidence.
In Hong Kong, stocks also climbed to new heights with the Hang Seng index closing favorably. The potential for a Federal Reserve rate cut could further uplift these markets, as stated by Fed Chair Jerome Powell, despite initial caution.
(With inputs from agencies.)
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