Global Market Shifts Amid Fed Speculation and Geopolitical Tensions
Global markets experienced turbulence as U.S. Federal Reserve Chair Jerome Powell hinted at a cautious approach to interest rate cuts, leading to a decline in stocks. Defence stocks in Europe surged following President Trump’s comments on Ukraine. Meanwhile, the U.S. dollar strengthened, with mixed impacts on economic indicators and commodities.
Stocks fell globally on Wednesday as Federal Reserve Chair Jerome Powell did not confirm investors' hopes for significant interest rate cuts. In contrast, the U.S. dollar rose broadly across various currencies.
In Europe, defence stocks outperformed, inspired by President Trump's supportive remarks on Ukraine's position against Russia. Despite geopolitical influences dominating this year's markets, investors focused on the U.S. economic outlook and potential Federal Reserve actions.
Long-term U.S. government bonds saw increased demand, while U.S. economic data indicated slowing business activity. In commodity markets, gold prices held steady, and Brent crude oil edged higher amid ongoing supply concerns.
(With inputs from agencies.)
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