On Thursday, Europe’s Stoxx 600 index saw an increase of 1.6%, with delicate real estate stocks making the most headway. Contracts registered on the S&P 500 also rose 0.3% after a record-high 2% rise on Wednesday, 13th December. Nasdaq 100 futures saw another solid increase, moving 0.5% with the tech-focused index within reaching distance of a closing record. Government bonds in the UK and Germany also experienced notable gains.
Investors bet on rate cuts ahead of Bank of England and European talks
Investors are turning their attention to talks between the Bank of England (BOE) and the European Central Bank (ECB) which are set to take place later this afternoon. According to experts, the main point of conversation will be the easing of global rates, depending on whether neighbouring markets are ready for such decisions.
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Craig Erlam, senior market analyst at Oanda, stated:
There’s been a lot of debate in recent weeks about whether investors are getting ahead of themselves, too optimistic about how quickly the Fed will cut rates — but the message from the central bank is that is not the case.
The dollar decreased to a four-month low this week, before clambering back some losses, while the yen managed a resistant climb of over 1%. Investors will need to wait for crucial data on US retail sales and initial jobless claims (as well as the verdict from the BOE and ECB) to assess the potential of any rate cuts.
