August 12, 2024
United States:
Stocks Rise as Bets Grow CPI Won’t Derail Fed Cuts: Markets Wrap
Stocks kicked off the week with gains on speculation key inflation data will keep the Federal Reserve on track to cut interest rates in September.
Equities wiped out the losses from last Monday’s market meltdown that rattled trading around the world. While the consumer price index probably picked up modestly in July, the annual metrics should continue to rise at a slow pace. The recent easing of price pressures has bolstered Fed officials’ confidence that they can start to lower borrowing costs while refocusing their attention on the labor market, which is showing greater signs of slowing.
Europe:
ECB to Cut Key Rate Six Times by End of 2025, Survey Shows
The European Central Bank is now likely to cut its deposit rate once a quarter through the end of next year, a timetable that will see its easing cycle end sooner than previously anticipated, according to economists.
A Bloomberg survey of forecasters shows that benchmark hitting 2.25% in December 2025 following six consecutive quarter-point reductions. Previously, respondents predicted that such a level would be reached only in the second quarter of 2026.
Asia:
India Inflation Dips Below RBI Target First Time Since 2019
India’s inflation eased below the central bank’s target for the first time in nearly five years, though it is unlikely to spur interest rate cuts just yet as policymakers want to see a sustained decline in prices.
The consumer price index rose 3.54% in July from a year earlier, data from Statistics Ministry showed Monday. That’s the slowest pace since August 2019 and compares with a median forecast of a 3.60% increase predicted by economists in a Bloomberg survey. Inflation climbed 5.08% in June.
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