ECB CUTS RATES
ECB's next rate cut an easy decision before choices become hard, Wunsch says
The European Central Bank's next interest rate cut is still a relatively easy decision, but subsequent moves should only come once inflation is clearly heading towards the 2% target, ECB policymaker Pierre Wunsch said in an interview.
Inflation is down in Europe. But the European Central Bank is in no hurry to make more rate cuts
In June, inflation in the eurozone fell slightly to 2.5%, above the European Central Bank's target. The ECB remains cautious about adding more rate cuts after a recent reduction. Inflation is expected to remain between 2% and 3%. ECB President Lagarde emphasizes the need to control inflation before further rate cuts. The economy faces challenges with high rates impacting credit-sensitive sectors like real estate.
Gold price movement: Fed action impact & what history suggests in a falling rate regime?
Gold investors await the outcome of the Federal Open Market Committee (FOMC) meeting for insights on the US Federal Reserve's interest rate cut impact. The European Central Bank and Bank of Canada have already reduced policy rates.
Charting the Global Economy: ECB cuts rates, US payrolls surge
The collapse of Modi’s support in Uttar Pradesh, India’s most-populous state and a one-time party stronghold, amounted to a collective rebellion from millions of people left behind in one of the world’s fastest-growing economies.
US Fed likely to remain on pause and pare back rate cut expectations
The US Federal Reserve is likely to keep interest rates unchanged this week, but could pare back the number of cuts it has penciled in for this year, as policymakers digest a mixed bag of economic data. But with the data still painting a mixed picture, he is unlikely to rock the boat too much this week, according to Oxford Economics chief US economist Ryan Sweet.
Gold tumbles on solid US nonfarm payroll report, China slowing down gold buying
Gold prices rose on rate cut expectations but fell due to a strong US nonfarm payroll report. The Dollar Index strengthened. Traders shifted rate cut expectations. Market awaits the US Federal Reserve's decision. China's Central Bank paused gold buying due to high prices.
Oil prices climb as OPEC+ reassures markets, ECB cuts interest rate
Oil prices rose as OPEC+ members Saudi Arabia and Russia hinted at output adjustments. Brent crude futures reached $80.03 per barrel, and U.S. West Texas Intermediate crude futures hit $75.71. Europe's interest rate cut raised expectations of a similar move in the U.S. Analysts await Chinese commodity trade data for insights into global oil demand.
European shares close shy of record after ECB delivers first rate-cut in five years
In new forecasts, the ECB said it expected inflation to average 2.2% in 2025 - up from a previous estimate of 2.0% and meaning it was now seen holding above the central bank's 2% target well into next year. ECB President Christine Lagarde said that only one ECB Governing Council member had opposed the bank's decision to cut interest rates earlier in the day.
ECB's Lagarde says only one governor opposed rate cut decision
"Was it a unanimous decision? Yes, but for one governor," Lagarde told reporters at a post-meeting news conference. "I leave it to your sagacity to identify who it is."
World stocks at record high after cautious ECB rate cut
It was enough to snip the pan-European STOXX 600's gains back to 0.6%, while the euro inched up to almost $1.0890 against the dollar and government bond yields - which reflect borrowing costs and move inversely to price - ticked up too.
ECB jumps ahead of Fed, cuts interest rate by 25 bps for first time since 2019
ECB raises inflation forecast for 2024, 2025. Analysts say the quarter-point cut on Thursday would likely not usher in a swift series of further cuts as the bank waits to make sure inflation is under control while easing credit to help the economy. While inflation at an annual rate of 2.6% in May is well down from the peak of 10.6% in October 2022, the decline has slowed in recent months and inflation even ticked up slighly from 2.4% in April.
ECB cuts rates, keeps next move under wraps
The European Central Bank cut interest rates for the first time in five years, lowering the deposit rate to 3.75%. The move came in response to inflation uncertainty following a slowdown. This move is seen as the start of an easing cycle, but future cuts may be delayed due to price and wage pressures. ECB remains data-dependent and may wait until September for further action. Fed's stance may impact ECB's decisions.
European stocks at record on tech and ECB bets
The pan-European STOXX 600 benchmark rose by 0.7%, with the technology subindex surging 2.6%, driven by significant gains from Wall Street's tech giants.
European Central Bank set to cut rates for the first time since 2019 even as inflation fight continues
All 82 economists polled by Reuters expected the ECB to trim its deposit rate to 3.75% on Thursday from a record 4.0%, in what would be its first cut since 2019. ECB policymakers have clearly telegraphed their intention to lower borrowing costs after seeing inflation in the 20 countries that share the euro fall from more than 10% in late 2022 to just above their 2% target in recent months.
London stocks edge up in anticipation of ECB rate cut
British equities rose on ECB rate cut expectations, with Antofagasta and John Wood Group seeing gains. Investors await Christine Lagarde's remarks and Bank of England's upcoming meeting.
Asia stocks rally as rate cut bets gather momentum; ECB in focus
Asian shares rose on Fed rate cut expectations and ECB meeting. Oil prices climbed, Treasury yields fell. Asia-Pacific shares outside Japan gained 1.14%, led by tech stocks.
US dollar gains after stronger-than-expected services sector data
The Institute for Supply Management said its nonmanufacturing purchasing managers index rose to 53.8 last month from 49.4 in April. May's reading, the highest since August, overshot estimates of all 59 economists in a Reuters poll that had pegged the median expectation at 50.8.
ECB to start rate cuts but sticky inflation clouds path ahead
The European Central Bank (ECB) is set to reduce eurozone interest rates from historic highs this week, with a quarter-point cut expected on Thursday, lowering the key deposit rate to 3.75%. Despite the reduction, persistent inflation and stronger-than-expected economic data suggest a slow pace for further rate cuts. ECB President Christine Lagarde is anticipated to provide future guidance post-meeting. Analysts predict only modest rate reductions throughout the year, with the deposit rate projected to reach 3.25% by the end of 2024.
Asia shares rally on hopes for more rate cuts this week
Asian share markets rose on Monday as investors anticipated rate cuts by the European Central Bank and possibly the Bank of Canada. Sticky inflation may prolong the easing process.
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