Five Things You Need to Know to Start Your Day: Europe
Get up to speed with what the markets are monitoring
Good morning. Stocks welcome the Federal Reserve’s half-point interest rate cut. The Bank of England is expected to keep rates steady. The yen slumps as the Bank of Japan kicks off its two-day policy meeting. Here’s what people are talking about.
Equities in Asia rose along with US and European stock-index futures following the Fed’s decision Wednesday. Optimism is growing the start of the central bank’s easing cycle with a half-percentage-point move will help guide the US economy toward a soft landing. Treasuries fell as the Fed signaled its aggressive move means it will need to lower rates at a slower pace going forward. Chair Jerome Powell cautioned against assuming big cuts would continue and signaled borrowing costs may need to remain higher than pre-pandemic norms. The yen tumbled against the greenback, while the Bloomberg Spot Dollar Index was little changed. Gold nudged higher as traders are betting on more Fed easing. Meanwhile, oil remained in a holding pattern as signs of weak US demand offset rising tensions in the Middle East.