* Hong Kong central bank cuts interest rate, tracks Fed move. * China expected to trim main policy rate and lending benchmarks. * Gulf central banks cut key interest rates. * Pakistan benchmark share index hits all-time high. * Brazil central bank raises rates by 25 bps. By Ankika Biswas.
Norway's central bank held its policy interest rate unchanged at a 16-year high of 4.50% on Thursday, as widely expected, and said any cuts must wait until the first quarter of next year, boosting the crown currency. "The committee judges that a restrictive monetary policy is still needed to bring inflation down to target within a reasonable time horizon," the central bank said in a statement.
* Biden to highlight progress on inflation and employment. * Fed rate cut signals inflation reduction, says Brainard. * White House sees no significant risks to economic outlook.
Wall Street indexes marched past previous record highs after global counterparts booked gains and longer-dated Treasury yields rose on Thursday as the start of the Federal Reserve's first interest rate cutting cycle in more than four years whet investors' risk appetite.
* World stocks near record high after bumper Fed cut. * Commodities cheer hopes of economic lift. * Bond markets take it all in their stride, BoE up next. * Graphic: World FX rates http://tmsnrt.rs/2egbfVh. By Marc Jones.
* Rates to stay on hold until year-end, may cut in Q1 2025. * Says restrictive policy needed to contain inflation. * Currency rallies. By Terje Solsvik. Norway's central bank held its policy interest rate unchanged at a 16-year high of 4.50% on Thursday, as widely expected, and said any cuts must wait until the first quarter of next year, boosting the crown currency.
* Germany's DAX clocks record closing high. * Poland's Allegro slides after Q2 results. * Bank of England, Norway's c.bank hold rates steady. * STOXX 600 up 1.4% By Shubham Batra and Shashwat Chauhan.
Sterling rose against a weakening dollar after the Federal Reserve cut interest rates by 50 basis points, with investors awaiting the outcome of the Bank of England policy meeting on Thursday expected to keep borrowing costs on hold. The pound briefly hit $1.3297, its highest level since March 2022, right after the Fed announcement on Wednesday.
Norway's central bank held its policy interest rate unchanged at a 16-year high of 4.50% on Thursday, as widely expected, and said it plans to start cutting borrowing costs in the first quarter of next year.
- Analysts remained bullish on most Asian currencies despite marginally dialling back some bets, a Reuters poll showed on Thursday, as a defensive U.S. dollar driven by a dovish Federal Reserve enhanced the appeal of risk-sensitive assets.
The U.S. dollar edged lower on Thursday after a larger than usual interest rate cut from the U.S. Federal Reserve that had been priced in by markets. The Fed on Wednesday kicked off its monetary easing cycle with a half-percentage-point rate cut that Chair Jerome Powell said was meant to show policymakers' commitment to sustaining a low unemployment rate now that inflation has eased.
- BofA Global Research raised its forecast for the Federal Reserve's anticipated interest rate cuts for the remainder of this year to 75 basis points, after the U.S. central bank kicked off a widely expected series of reductions on Wednesday.
STOCKS: The benchmark BSE Sensex was up 0.4% to 83,275, while the broader NSE index advanced 0.2% to 25,436, after hitting record highs earlier in the day as the U.S. Federal Reserve started its monetary easing cycle with a large 50-basis-point rate cut.
European stocks jumped nearly 1% on Thursday after the U.S. Federal Reserve delivered a 50-basis-point rate cut and flagged that further easing would be measured, raising hopes of a soft landing for the American economy.
* JAPAN BANKERS ASSOCIATION CHAIR: THE BANKING INDUSTRY IS SEEING MORE INQUIRIES FROM INDIVIDUAL CUSTOMERS CONCERNING THE IMPACT OF INTEREST RATES AND FIXED RATE PRODUCTS SUCH AS FOR HOUSING LOANS. * JAPAN BANKERS ASSOCIATION CHAIR: I HOPE THAT WHOEVER BECOMES THE NEW PRIME MINSTER WILL CONTINUE KISHIDA GOVERNMENT'S SUCCESSES IN BRINGING ABOUT THE MOVE FROM SAVINGS TO INVESTMENT.
Euro zone government bond yields were muted on Thursday, a day after the Federal Reserve kicked off its easing cycle with a larger than usual interest rate cut but signalled policy moves would be measured through the end of the year. The Fed lowered its key interest rate by 50 basis points to the 4.75%-5.00% range, when most analysts saw a quarter-point cut as the most likely outcome.
The dollar bounced, long-dated bond yields were up and Asian stocks surged after the Federal Reserve announced a 50-basis-point rate cut and flagged a measured easing cycle ahead, leaving open a path to a soft landing for the U.S. economy.
Oil prices rose more than 1% on Thursday after a large interest rate cut from the U.S. Federal Reserve, helping Brent to recover from below $69 last week - its lowest all year - to above $74. Brent crude futures were up 90 cents, or 1.2%, to $74.55 a barrel at 1303 GMT, while WTI crude futures for October were up 88 cents, also 1.2%, to $71.79 a barrel.
Japanese government bond yields rose on Thursday, tracking their U.S. peers higher, after the Federal Reserve delivered a larger-than-usual reduction in interest rates at the conclusion of its two-day meeting. The 10-year JGB yield was up 3 basis points at 0.85%, after briefly hitting 0.855% following an overnight rise in U.S. Treasury yields.
China is widely expected to trim its main policy and benchmark lending rates on Friday, a Reuters poll showed, after the Federal Reserve's outsized interest rate cut removed some of the risks around sharp yuan declines. Monetary policy divergence and a weakening Chinese yuan have been the key constraints limiting Beijing's efforts to loosen policy over the past few years.
Prices of most base metals rose on Thursday, following the long-awaited U.S. Federal Reserve rate cuts and with bets of more stimulus in top metals consumer China. Three-month copper on the London Metal Exchange added 0.2% to $9,418 per metric ton by 0449 GMT, extending previous session's gains.
One of the most consequential Federal Reserve meetings in recent history has put investors' focus squarely on one question: whether the central bank has kicked off its rate cutting cycle in time to keep the economy from slowing too rapidly.
One of the most consequential Federal Reserve meetings in recent history has put investors' focus squarely on one question: whether the central bank has kicked off its rate cutting cycle in time to keep the economy from slowing too rapidly.
The U.S. dollar rose broadly on Thursday, reversing a brief tumble in the immediate aftermath of the Federal Reserve's outsized interest rate cut that had been largely priced in by markets.
* Market reaction muted despite Fed's large rate cut. * Experts warn calm may not last, citing potential market volatility. * Bond yields spike, small caps show mixed response. By Saqib Iqbal Ahmed, Suzanne McGee and Carolina Mandl. NEW YORK, Sept 19 - Investors who anticipated furious market swings following the U.S. Federal Reserve's bumper rate cut saw more of a muted reaction.
A look at the day ahead in European and global markets from Rae Wee. With the Federal Reserve's highly anticipated rate cut done and dusted, the Bank of England is next up in the rate decision spotlight, although Thursday's outcome looks unlikely to be a head-turner.
A look at the day ahead in European and global markets from Rae Wee. With the Federal Reserve's highly anticipated rate cut done and dusted, the Bank of England is next up in the rate decision spotlight, although Thursday's outcome looks unlikely to be a head-turner.
Indonesia's parliament on Thursday passed President-elect Prabowo Subianto's maiden budget for 2025, with spending set at 3,621.3 trillion rupiah and the fiscal deficit projected to be 2.53% of gross domestic product. The budget assumes economic growth of 5.2%, a small increase from 2024's forecast of 5.1%, and a revenue target of 3,005.1 trillion rupiah.
Indian shares rose to a record high in early trade on Thursday, led by information technology stocks, after the U.S. Federal Reserve started its monetary easing cycle with a large 50-basis-point rate cut. The Nifty 50 index was up 0.76% at 25,570.6 points, while the S&P BSE Sensex rose 0.82% at 83,647.96, as of 9:22 a.m. IST.
* Bullion rose to record high of $2,599.92 on Wednesday. * U.S. jobless claims data due at 1230 GMT. By Daksh Grover. Gold prices rose on Thursday after hitting a record high in the previous session, as the U.S. Federal Reserve delivered a super-sized interest rate cut. Spot gold rose 0.5% to $2,571.40 per ounce, as of 0543 GMT after scaling a record high of $2,599.92 on Wednesday.
By Jamie McGeever. Beyond the immediate headlines generated by the Fed's 50 basis point interest rate cut, it is policymakers' revised outlook for the fed funds rate's eventual destination, and how soon it takes to get there, that matters more.
* Employment jumps sharply, jobless rate holds steady. * Data backs RBA's view that near-term rate cuts unlikely. * Markets pare chance for Dec easing to 62% from 75% before data. By Stella Qiu and Wayne Cole.
The dollar bounced, long-dated bond yields were up and Asian stocks rose after the U.S. Federal Reserve announced a 50-basis-point rate cut and flagged that its easing cycle would be measured. The S&P 500 hit a record high overnight and although it closed slightly lower, futures rose 0.67% in the Asia day.
Japan's Nikkei share average rose more than 2% on Thursday, led by exporters as the yen weakened against the dollar on prospects of slower-than-expected future rate cuts by the U.S. Federal Reserve. The Nikkei had risen 2.6% to 37,317.39 by 0202 GMT.
Indian shares are set to open marginally higher on Thursday as the U.S. Federal Reserve started its monetary easing cycle with a large 50-basis-point rate cut. The GIFT Nifty was at 25,453.5 points as of 08:08 a.m. IST, indicating the NSE Nifty 50 will open slightly above its close of 25,377.55 on Wednesday. The Fed cutting rates could boost the markets to record highs, two analysts said.
Prices of most base metals trended lower on Thursday, weighed down by a stronger U.S. dollar after the Federal Reserve unveiled its oversized interest rate cut that had been largely priced in by markets. Three-month copper on the London Metal Exchange slid 0.9% to $9,319.50 per metric ton by 0145 GMT, reversing gains in the previous session.
The Hong Kong Monetary Authority on Thursday cut its base rate charged via the overnight discount window by 50 basis points to 5.25%, tracking a move by the U.S. Federal Reserve. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.
Major Wall Street indexes broke record highs after global counterparts booked gains and Treasury yields rose on Thursday as the start of the Federal Reserve's first rate-cutting cycle in more than four years whet investors' risk appetite.
The dollar bounced, long-dated bond yields were up and Asian stocks mostly rose after the U.S. Federal Reserve began its easing cycle with a large rate cut, though it tempered that with a balanced outlook as it seeks to keep the economy ticking over. The S&P 500 hit a record high overnight, before closing slightly lower.
Australian employment blew past forecasts for a third straight month in August, yet the jobless rate held steady as the workforce also expanded at a rapid rate, reinforcing the view that the labour market remains tight.
The Hong Kong Monetary Authority said on Thursday that a larger-than-anticipated U.S. interest rate cut will have a positive impact on the economy of the Asia financial centre.
Japanese government bond yields rose on Thursday, tracking their U.S. peers higher, after the Federal Reserve delivered a larger-than-usual reduction in interest rates at the conclusion of its two-day meeting. The 10-year JGB yield was up 2.5 basis points at 0.845%, as of 0105 GMT, after briefly touching 0.855% following an overnight rise in U.S. Treasury yields.
Gold struggled for momentum on Thursday as market participants digested Federal Reserve Chair Jerome Powell's comments after the U.S. central bank delivered a super-sized rate cut. FUNDAMENTALS. * Spot gold was little changed at $2,558.00 per ounce, as of 0033 GMT.
Japan's Nikkei share average rose more than 2% on Thursday, led by export-oriented stocks, as the yen weakened against the U.S. dollar despite a bumper interest rate cut by the Federal Reserve. The Nikkei was up 2.1% at 37,133.34, as of 00:08 GMT, while the broader Topix was up 1.9% to 2,614,09.
By Chibuike Oguh and Stefano Rebaudo. The U.S. dollar slipped in choppy trading on Wednesday as markets grappled with the supersized 50 basis point interest rate cut, as well as the switch to an easing monetary policy stance delivered by the Federal Reserve.
The U.S. dollar rose broadly on Thursday, recovering from an earlier tumble in the immediate aftermath of the Federal Reserve's outsized interest rate cut that had been largely priced in by markets.
Laurentian Bank of Canada (LRCDF): * LAURENTIAN BANK OF CANADA DECREASES ITS USD BASE RATE IN CANADA. * Laurentian Bank of Canada (LRCDF): ANNOUNCES A DECREASE TO ITS BASE RATE IN CANADA OF 50 BASIS POINTS FROM 9.00% TO 8.50%, EFFECTIVE SEPTEMBER 19, 2024 Source text for Eikon: Further company coverage:
The Hong Kong Monetary Authority on Thursday cut its base rate charged via the overnight discount window by 50 basis points to 5.25%, tracking a move by the U.S. Federal Reserve. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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