Wall Street ended higher on Wednesday,? after the Federal Reserve cut interest rates by a quarter percentage point as expected and investors bet on further easing down the road even as the central bank signaled that it will put further cuts on pause for now.
* Futures off: Dow 0.17%, S&P 500 0.15%, Nasdaq 0.23% U.S. stock index futures fell on Wednesday, ahead of a Federal Reserve monetary policy decision widely expected to deliver an interest rate cut alongside hawkish commentary on the path of future easing.
The U.S. Federal Reserve is expected to cut interest rates on Wednesday as policymakers grapple with gaps in economic data caused by the recent government shutdown and work through competing views about the risks facing the economy.
The U.S. Federal Reserve may not give President Donald Trump all the rate cuts he wants, but the view of the economy policymakers included in new economic projections on Wednesday should buoy the administration nonetheless with its outlook for faster growth, lower inflation and steady unemployment heading into the 2026 midterm elections.
* Projections to set baseline for Powell's successor, show potential for further rate cuts. * Inflation, affordability issues remain unresolved. * Trump's economic approval ratings have come down. * Fed policy statement, projections due at 2 p.m. EST. By Howard Schneider.
* Economists expect BoC to hold rates steady until 2027. * Money market bets inclined towards rate hike in Q4. * Canada's economy shows resilience despite US tariffs. * Unemployment rate falls to 16-month low of 6.5% By Promit Mukherjee.
* * Three policymakers dissent on policy decision. * Policymakers see one rate cut in 2026. By Howard Schneider. The U.S. Federal Reserve cut interest rates on Wednesday in another divided vote, but signaled it will likely pause further reductions in borrowing costs as officials look for clearer signals about the direction of the job market and inflation that "remains somewhat elevated."
Sterling edged up against the dollar and was roughly unchanged versus the euro as investors braced for the Federal Reserve policy meeting outcome due later in the session and data on British economic growth on Friday. The currency has added around 1% since finance minister Rachel Reeves delivered the budget on November 26.
Cryptocurrency bettors are almost certain that the?Federal Reserve?will enact a quarter-point interest rate cut at the end of its December meeting on Wednesday. The?odds?of a 25 basis-point cut stood at 97%?on the decentralized prediction platform?Polymarket, up from 70% only a month ago.
The Indian rupee slipped on Wednesday, ending a session of back-and-forth price action shaped by portfolio flows, likely maturity of positions in the non-deliverable forwards market and caution ahead of the Federal Reserve's policy decision. The rupee closed at 89.9650 to the U.S. dollar, slightly weaker than the close of 89.8750 in the previous session.
Greek industrial output rose by 6.4% year-on-year in October, after an upwardly revised 7.3% increase in September, data from statistics service ELSTAT showed on Wednesday. A breakdown of index components showed manufacturing production rose 4.2% from the same month in 2024.
Germany's 10-year borrowing costs hit fresh multi-month highs on Wednesday as traders price out any chance of further European Central Bank rate cuts, while looking ahead to an important Federal Reserve meeting later in the day.
* Delivery Hero gains after saying it evaluates strategic options. * Aegon falls after announcing U.S. relocation plans. * Renewable energy firm set to extend Tuesday's gains. By Purvi Agarwal and Ragini Mathur.
Canacol Energy Ltd : * ENTERS AGREEMENT WITH AD HOC GROUP OF HOLDERS OF CO'S 5.75% SENIOR UNSECURED NOTES DUE 2028. * DEBTOR-IN-POSSESSION FINANCING COMPRISED OF $45 MILLION DELAYED-DRAW NEW-MONEY TERM LOAN, OTHERS Further company coverage:
* Stocks up 0.33%, currencies up 0.1% * Ukraine clinches deal to swap GDP-linked warrants. * China real estate shares jump. By Niket Nishant. Emerging market assets inched higher ahead of a widely expected interest rate cut by the Federal Reserve on Wednesday, while investors also monitored developments in Ukraine that could influence global risk sentiment.
* Silver hits record high of $61.61/oz. * Silver crossed $60/oz for the first time on Tuesday. * Fed rate cut decision due at 1900 GMT today. By Pablo Sinha. Gold prices were little changed on Wednesday ahead of an anticipated Federal Reserve rate cut, with investors awaiting comments from Chair Jerome Powell on future policy moves, while silver extended its historic rally above $60 an ounce.
Mortgage rates are unlikely to plunge after this week's Federal Reserve meeting, but borrowers could see a slow, uneven drift lower rather than an immediate break, economists and housing forecasters say.
* European stocks, S&P futures flat. * Fed seen cutting 25bps, focus on dots and Powell. * Yen shaky after stumble takes it to record low on euro. * Silver bursts above $60 an ounce. By Amanda Cooper. LONDON, Dec 10 - Global stocks dipped on Wednesday as crunch time neared for a divided Federal Reserve policy board and earnings results that could test sky-high valuations in the AI sector.
Most Asian currencies and stocks were
subdued on Wednesday as investors awaited the U.S. Federal
Reserve policy outlook for 2026, while the Indonesian rupiah
slipped on reports a trade deal with the ...
* Silver hits record high of $61.46/oz. * Silver crossed $60/oz for the first time on Tuesday. * White House adviser Hassett says 'plenty of room' to cut rates. By Ishaan Arora.
The International Monetary Fund on Wednesday urged China to speed up structural reform, as global pressure mounts on the world's second-largest economy to shift to a consumption-led growth model and rein in debt-driven investment and exports. The manufacturing juggernaut has posted a $1 trillion trade surplus for the first time and is set to drive up to 40% of global growth in 2025.
The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the ?Fear? zone on Tuesday. U.S. stocks settled mixed on Tuesday, with the Dow Jones index falling over 150 points during the session ahead of the interest-rate decision by the Federal Reserve.
Japan's broad Topix gauge of shares touched a record high before losing momentum on Wednesday, as investors awaited key central bank decisions at home and abroad.
* Silver hits record high of $61.46/oz. * Silver crossed $60/oz for the first time on Tuesday. * White House adviser Hassett says 'plenty of room' to cut rates. By Ishaan Arora.
The Indonesian rupiah weakened on
Wednesday, while other Asian currencies and equities trod water
as investors globally awaited guidance from a potentially
divided U.S. Federal Reserve policy board ...
* Yen nurses losses after broad fall overnight. * BOJ expected to hike in December, but future moves uncertain. * Dollar, other currencies rangebound ahead of Fed outcome. By Rae Wee.
A look at the day ahead in European and global markets from Rae Wee. Much of investors' attention for the week has been on the Federal Reserve's rate decision, but for a brief moment on Wednesday, focus in currency markets turned to the yen. The yen looked punch-drunk in Asia after a sudden spill overnight that saw it fall to a record low against the euro and slide nearly 0.9% against the Aussie.
A look at the day ahead in European and global markets from Rae Wee. Much of investors' attention for the week has been on the Federal Reserve's rate decision, but for a brief moment on Wednesday, focus in currency markets turned to the yen. The yen looked punch-drunk in Asia after a sudden spill overnight that saw it fall to a record low against the euro and slide nearly 0.9% against the Aussie.
* Nikkei slips in nervous Asia trade, S&P futures flat. * Fed seen cutting 25bps, focus on dots and Powell. * Yen shaky after stumble takes it to record low on euro. * Silver's bull run breaks more chart barriers. By Wayne Cole.
* Silver hits record high of $61.46/oz. * Silver crossed $60/oz for the first time on Tuesday. * White House adviser Hassett says 'plenty of room' to cut rates. By Ishaan Arora.
Major stock indexes added to gains while U.S. Treasury yields extended declines on Wednesday after the Federal Reserve cut interest rates and signalled it will likely pause further reductions in borrowing costs. The U.S. dollar stayed lower. However, policymakers have been weighing signs of a cooling labor market against concerns about inflation risks.
* Nikkei slips in nervous Asia trade, S&P futures dip. * Fed seen cutting 25bps, focus on dots and Powell. * Yen shaky after stumble takes it to record low on euro. * Silver's bull run breaks more chart barriers. By Wayne Cole.
* CPI rises to 21-month high on food price spike. * PPI still stuck in negative territory. * Deflationary trend expected to persist through to next year. * More policy support expected as domestic demand remains weak.
Japan's broad Topix gauge of shares touched a record high before turning lower in tentative trading on Wednesday, as investors awaited key central bank decisions at home and abroad.
U.S. stock futures are down on Tuesday night ahead of the Federal Open Market Committee?s key interest rates decision on Wednesday. All three major indices are currently in the red, with?Nasdaq Futures?down 0.19%, or 49 points, trading at 25,650.75, while the?S&P 500 Futures?are down 0.08% and 5.25 points, at 6,843.00, followed by the?Dow Jones Futures?at 47,594.00, down 0.04% or 19 points.
China's annual consumer inflation accelerated to a 21-month peak in November, mainly driven by food prices, while factory-gate deflation deepened, with underlying trends suggesting domestic demand remains weak and unlikely to recover in the near term.
China's annual consumer inflation accelerated in November while producer deflation persisted, official data showed on Wednesday, as policymakers extended their campaign to curb overcapacity. The consumer price index rose 0.7% from a year earlier, National Bureau of Statistics data showed, matching a 0.7% expansion in a Reuters poll of economists.
U.S. President Donald Trump on Tuesday asked his treasury secretary to investigate whether his predecessor Joe Biden used an autopen to sign the appointments of some Democratic members of the Federal Reserve's Board of Governors.
The U.S. dollar extended losses against major peers including the euro, Swiss franc, and Japanese yen on Wednesday after the Federal Reserve lowered interest rates in a widely expected move.
* Yen nurses losses after broad fall overnight. * BOJ expected to hike in December, but future moves uncertain. * Dollar, other currencies rangebound ahead of Fed outcome. By Rae Wee.
U.S. President Donald Trump said he has heard that his predecessor Joe Biden used an autopen to sign the appointments of some Democratic members of the Federal Reserve's Board of Governors and suggested he could challenge the legality of those appointments.
Short-term Japanese government bond yields hit a 17-year high on Wednesday on increasing certainty that the central bank would resume interest rate hikes at its meeting next week. The two-year JGB yield rose 0.5 basis point to 1.07%, the highest since July 2007.
The Federal Reserve is widely expected to trim interest rates on Wednesday, but if Chair Jerome Powell wants to give markets an added holiday surprise, here's one option: about $45 billion of monthly short-term bill purchases. That's the out-of-consensus call from Bank of America's rates strategists. Bank reserves peaked at $4.27 trillion in 2021, and have recently fallen as low as $2.83 trillion.
* Investors consider Nvidia (NVDA) decision. * Investors cautious ahead of central bank meetings. * Fed rate cut all but certain, focus moves to outlook. By Caroline Valetkevitch. Most major stock indexes dipped, while the dollar and U.S. Treasury yields edged higher on Tuesday before a likely interest rate cut from the Federal Reserve but also possibly hawkish comments from policymakers.
U.S. President Donald Trump on Tuesday said he would be meeting with "a couple" candidates to replace Jerome Powell as Federal Reserve chair. "I'm going to be looking at a couple different people but I have a pretty good idea of who I want," Trump told reporters aboard Air Force One while on the way to an event in Pennsylvania.
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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