- Following the Federal Reserve's announcement that interest rates would be lowered in 2019, stocks and bonds surged and the dollar depreciated, sending a bullish ripple through the financial system amid hopes that inflation pressures would lessen.
- As a result of the rise in Nasdaq 100 futures, the underlying tech-heavy index was primed for a record close. S&P 500 futures increased somewhat as the benchmark closed Wednesday's trading within 2% of its all-time high. The Stoxx 600 index in Europe increased by 1.7%. French and German stock markets reached new all-time highs.
- The pound gained strength and the dollar fell to a four-month low after the Bank of England expressed a more hawkish stance than the Federal Reserve in its rate decision on Thursday.
- The wider rush towards risk-taking was a reaction to the US central bank's shift towards a looser policy on Wednesday, when it kept interest rates unchanged and predicted that future adjustments would be lower. The "dot plot" provided by Fed policymakers predicted reductions of 75 basis points by 2024, while traders are much more bullish, projecting cuts of twice that amount.
- Traders bet on five BoE 25bps rate cuts in 2024 after the Fed's decision.
- Traders price 150bps of Fed rate cuts in 2024 for the first time.
- IEA trims the 2023 global oil demand growth forecast by 90,000 bpd to 2.3 million bpd.
- SNB's Chairman Jordan: A rate cut is not for discussion now, our policy stance is adequate.