Aug 2 2024: Following numerous false starts, investors are now eager to secure what are still some of the highest government and corporate bond yields in 15 years before they disappear as central banks begin easing monetary policy in earnest. Encouraged by headline inflation returning to target levels and anticipated tax increases from the new British government, the Bank of England narrowly voted for its first interest rate cut in four years this week. This move came just 24 hours after the U.S. Federal Reserve signaled it was prepared to cut rates in seven weeks’ time. Despite the cautious rhetoric and…
Author: editor2
Aug 2 2024: The U.S. dollar fell in early European trade on Friday, pressured by weak economic data that heightened fears of a sharp slowdown in the world’s largest economy, potentially leading the Federal Reserve to loosen monetary policy aggressively. As of 04:00 ET (09:00 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.2% to 103.997. This continued its decline after falling 1.7% in July, marking its weakest monthly performance this year. Dollar Weaker on Recession Fears Overnight, data revealed that U.S. manufacturing activity contracted at the fastest pace in eight months…
Aug 2 2024: Oil prices held steady on Friday but remained on track for a fourth consecutive weekly decline due to signs of weak global fuel demand overshadowing fears of supply disruptions in the Middle East. As of 10:40 GMT, Brent crude futures were up 18 cents, or 0.2%, at $79.70 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 16 cents, or 0.2%, to $76.47 a barrel. Both benchmarks have lost more than 7% over the past four weeks, marking the longest run of weekly losses this year. Demand Concerns Weigh on Oil Prices “Weak economic growth in major…
Aug 2 2024: Bitcoin prices fell slightly on Friday and were on track for a significant weekly loss as concerns over slowing economic growth led to a broader market rout, negatively impacting crypto prices. Fears of a potential mass sale by the U.S. government and uncertainty about the U.S. presidential race’s impact on crypto regulation kept traders wary. As of 02:02 ET (06:02 GMT), Bitcoin steadied at $64,255, after earlier hitting a low of $63,697.1. Bitcoin Faces Weekly Losses Amid Negative Crypto Sentiment The world’s largest cryptocurrency was set to lose over 5% this week, with sentiment towards crypto markets deteriorating…
Aug 2 2024: U.S. stock index futures experienced a sharp decline on Friday, extending recent losses due to disappointing earnings from tech giants and growing concerns about economic slowdown. As of 06:30 ET (10:30 GMT), Dow Jones Futures fell 380 points, or 0.9%, S&P 500 Futures dropped 59 points, or 1.1%, and Nasdaq 100 Futures slumped 295 points, or 1.6%. Wall Street indices closed significantly lower on Thursday following a softer-than-expected ISM report on U.S. manufacturing, which heightened recession fears. The S&P 500 dropped 1.4%, the NASDAQ Composite fell 2.3%, and the Dow Jones Industrial Average slumped nearly 500 points, or…
Aug 1 2024: The Bank of England (BoE) appears ready to reduce interest rates on Thursday after maintaining them at a 16-year high of 5.25% for the past year. However, markets and economists remain uncertain about the British central bank’s decision. A Reuters poll last week showed that most economists expected a quarter-point cut but anticipated a close vote within the BoE’s Monetary Policy Committee (MPC), likely a narrow 5-4 majority in favor. Late on Wednesday, financial markets were pricing in a 66% chance of a quarter-point cut, with expectations for one more cut before the year’s end. “It’s certainly going…
Aug 1 2024: On Thursday, the dollar rebounded after a decline the previous day, driven by ongoing central bank actions impacting currency markets. Meanwhile, sterling hit a three-week low ahead of a critical Bank of England decision. The dollar index, which tracks the currency against six major counterparts, rose 0.29% to 104.35. This followed a 0.4% drop the previous day after the Federal Reserve kept interest rates unchanged but hinted at potential rate cuts in September. Chris Turner, head of global markets at ING, noted that geopolitical tensions and a slowing global economy were likely bolstering the dollar, a traditional “safe…
Aug 1 2024: Gold prices stabilized in Asian trading on Thursday, following a surge close to record highs in the previous session after the Federal Reserve hinted at a possible interest rate cut in September. The precious metal also saw increased safe-haven demand due to escalating concerns over a potential larger conflict in the Middle East, following the killing of Hamas leader Ismail Haniyeh in Tehran. Spot gold steadied at $2,446.41 an ounce, while gold futures for December delivery rose 0.7% to $2,490.15 an ounce by 01:26 ET (05:26 GMT). Rate Cut Speculation Supports Gold Prices Gold prices soared on Wednesday,…
Aug 1 2024: On Thursday, Bitcoin’s price declined, continuing its recent downtrend and finding little support from a Wall Street rally after the Federal Reserve suggested a possible interest rate cut in September. The crypto market sentiment was largely hampered by concerns over a potential mass sale by the U.S. government, which reportedly mobilized about $2 billion worth of Bitcoin earlier this week. Hopes for a boost from crypto-positive promises by Republican presidential nominee Donald Trump faded after a Bloomberg poll showed Democratic frontrunner Kamala Harris erasing Trump’s lead in seven key battleground states. Bitcoin dropped 2.9% over the past 24…
Aug 1 2024: On Thursday, major European stock markets experienced declines following a series of mixed corporate earnings reports in the U.S. and Europe. Meanwhile, the anticipation of potential policy easing in the United States contributed to a rally in global bond markets. The Federal Reserve kept interest rates unchanged on Wednesday but indicated a possible rate cut in September. Traders speculated that the Bank of England might also lower rates later in the day, with a 60% chance of a quarter-point reduction. European markets were mostly in the red, with the pan-European STOXX 600 falling 0.6%, and Germany’s DAX and…
