top of page
Black Modern Cryptocurrency Presentation (1).jpg

NEWS & ANALYSIS POSTS

European Stocks Set to Rise on Fed Rate-Cut Bets: Markets Wrap

This morning, European equity futures rose, reflecting optimism about potential US interest-rate cuts.

Federal Reserve Chair Jerome Powell's recent comments indicated that inflation is returning to a downward trajectory, fueling market expectations for rate reductions. The S&P 500 closed above 5,500 for the first time, boosting global investor sentiment.


Market Highlights

Dollar vs. Peers

The US dollar is experiencing mixed movements against its peers. While the dollar gained against the euro and yen, reflecting the anticipation of interest rate cuts, its performance against other major currencies remains steady.


Investors are closely monitoring upcoming US economic data for further clues on the Fed's policy direction. The EUR/USD is currently trading at 1.0850, down 0.2% from the previous session, while USD/JPY is holding steady at 145.30.


Gold

Gold prices are relatively stable despite the stronger dollar, supported by ongoing geopolitical uncertainties and inflation concerns.


The precious metal is trading around $1,925 per ounce. Investors are keeping an eye on US economic indicators and central bank policies, which will significantly impact gold's trajectory. Rising bond yields, however, pose a downside risk to gold prices.


Oil

Oil prices have climbed to near a two-month high, supported by supply concerns and a weaker dollar. WTI crude futures are trading at $82.50 per barrel, up 0.3% from the previous session.


Market participants are watching for any signals from OPEC+ regarding production adjustments and closely monitoring US inventory data for further direction.


Specific Stocks

SoftBank Group Corp. shares have surged, trading above their lifetime closing high for the first time in three years.


This increase is driven by a global surge in AI and chip investments. Tesla Inc. also saw significant gains, surging 10% to lead the Nasdaq 100, which closed above the 20,000 mark for the first time.


Trading Ideas

  • Forex: Consider long positions on USD/JPY, leveraging the dollar's strength and the Fed's dovish outlook. Monitor US economic data releases for confirmation.


  • Gold: Maintain a cautious stance on gold. While geopolitical tensions provide support, rising bond yields could pressure prices. Short positions may be considered if bond yields continue to rise.


  • Oil: Look for buying opportunities in WTI crude if prices dip, considering the current supply concerns and the dollar's influence. Monitor OPEC+ signals and US inventory data.


  • Stocks: SoftBank Group Corp. presents a buying opportunity given its recent performance and the global investment trend in AI and chips. Tesla Inc.'s significant gains also make it a stock to watch closely for potential trades.


Additional Insights

  • Geopolitical Events: Ongoing tensions, particularly in the Middle East, continue to influence commodity markets and safe-haven assets. Traders should remain vigilant about geopolitical developments.


  • Economic Indicators: Key US economic data, including initial jobless claims and ADP employment figures, are expected to provide more clarity on the Fed's policy outlook.


  • Central Bank Policies: Updates from the Federal Reserve and other central banks, including the European Central Bank and the Bank of Japan, will play a critical role in shaping market expectations.



Conclusion

As European stocks prepare to open higher, driven by optimism around potential Fed rate cuts, traders should stay alert to the dollar's movements and their impact on gold, oil, and specific stocks like SoftBank Group Corp. and Tesla Inc.


Keep an eye on broader market influences, including geopolitical events and key economic indicators, to make informed trading decisions today.

bottom of page