August 19, 2024
United States:
Traders Need Fed’s Rate-Cut Signal to Keep Stocks Rallying
Wall Street is betting that Federal Reserve Chair Jerome Powell will confirm that interest-rate cuts are coming at the central bank’s annual confab in Jackson Hole, Wyoming. But as the debate shifts from “will they or won’t they?” to “how big will they go?” — stock traders may be left wanting.
“If traders hear cuts are coming, stocks will react favorably,” said Eric Beiley, executive managing director of wealth management at Steward Partners Global Advisory. “If we don’t hear what we want, that would trigger a big selloff.”
United Kingdom:
UK Property Buyers Return to Market After BOE Rate Cut
UK house hunters stepped up their search after the Bank of England’s first reduction in interest rates in over four years and Labour’s election win created “buyer buzz,” Rightmove Plc said.
The online property portal said the number of buyers contacting estate agents to view houses for sale jumped 19% from a year ago since the BOE decision on Aug. 1, an acceleration from the 11% increase across the month of July. The number of sellers coming to market also rose by 5% compared to a year earlier.
Asia:
Yen Rises More Than 1% Versus Dollar, Leads G-10 Currency Gains
The yen outperformed among Group-of-10 currencies on Monday, rallying more than 1% against the dollar in jittery trading ahead of key central bank events later in the week.
Japan’s currency climbed as much as 1.7% versus the greenback to 145.19, before trimming the advance to about 1.1% as of 5:17 p.m. in Tokyo. The rally came amid broad weakness in the dollar, with investors on edge before Bank of Japan Governor Kazuo Ueda appears in parliament on Friday, and Federal Reserve Chair Jerome Powell speaks at Jackson Hole later the same day.
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