Global Markets Brace for Fed Rate Cuts Amid Volatile Conditions
Global markets remained steady, fueled by expectations of Federal Reserve rate cuts this week. U.S. stock futures saw gains, while European equities faced declines, especially in rate-sensitive sectors. Despite mixed economic indicators, investor optimism persists, with strong performances in some major indices and commodities.
Global shares held steady on Tuesday as investors anticipated a likely rate cut by the Federal Reserve this week, balancing movements in U.S. and European stock futures. While optimism buoyed markets stateside, European equities faced pressure led by rate-sensitive sectors.
MSCI's all-country index saw a modest rise of 0.15%, hitting new record highs, whereas the pan-European STOXX 600 experienced a slight decline, mainly driven by financial institutions that might be affected by stalled ECB rate cuts. The market largely anticipates the Fed to pursue an easing path, in contrast to Europe's moderate stance.
On the economic front, fading prospects for further European Central Bank rate cuts have prompted mixed market reactions, with commodities such as oil and gold experiencing shifts amid geopolitical tensions and currency fluctuations. Notably, a weaker dollar has supported gold prices, reflecting ongoing investor caution.
(With inputs from agencies.)
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