Markets Renew Fed Rate Cut Hopes

Indications of continuing sluggishness in the U.S. economy as revealed in the Fed’s Beige book renewed Fed rate cut expectations. Markets also digested the dollar’s weakness and the easing in bond yields. Positive earnings updates from the corporate sector also swayed sentiment.

According to the CME Group’s FedWatch Tool, the likelihood of a quarter-point cut in the next Fed review in November has increased to 95 percent from 91.8 percent a day earlier.

Wall Street Futures are directionless. European benchmarks are trading higher. Asian benchmarks however closed on a mostly negative note.

The Dollar Index declined. Bond yields mostly eased. Escalation in geopolitical tensions lifted crude oil prices. Gold prices rebounded after Wednesday’s correction. Cryptocurrencies are trading mixed.

Here is a snapshot of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 42,469.80 down 0.11%
S&P 500 (US500) at 5,826.60, up 0.50%
Germany’s DAX at 19,506.45, up 0.64%
U.K.’s FTSE 100 at 8,303.79, up 0.55%
France’s CAC 40 at 7,553.09, up 0.74%
Euro Stoxx 50 at 4,959.25, up 0.75%
Japan’s Nikkei 225 at 38,177.50, up 0.26%
Australia’s S&P ASX 200 at 8,206.30, down 0.12%
China’s Shanghai Composite at 3,280.26, down 0.68%
Hong Kong’s Hang Seng at 20,489.62, down 1.30%

Currencies:

EUR/USD at 1.0802, up 0.19%
GBP/USD at 1.2969, up 0.38%
USD/JPY at 151.87, down 0.58%
AUD/USD at 0.6657, up 0.36%
USD/CAD at 1.3817, down 0.14%
Dollar Index at 104.14, down 0.28%

Ten-Year Govt Bond Yields:

U.S. at 4.192%, down 1.23%
Germany at 2.2610%, down 2.25%
France at 2.986%, down 1.84%
U.K. at 4.2680%, up 1.59%
Japan at 0.946%, down 1.46%

Commodities:

Brent Oil Futures (Dec) at $76.29, up 1.77%.
Crude Oil WTI Futures (Dec) at $71.95, up 1.67%.
Gold Futures (Dec) at $2,751.00, up 0.79%.

Cryptocurrencies:

Bitcoin at $66,947.49, up 0.73%
Ethereum at $2,524.25, down 2.18%
BNB at $588.37, up 0.98%
Solana at $172.37, up 3.71%
XRP at $0.526, down 0.05%.