Global Markets:
Asia-Pacific markets showed mixed results on Tuesday, following comments from Federal Reserve Chair Jerome Powell, who suggested that future rate cuts by the U.S. central bank may not be as aggressive. Speaking during a Q&A with Morgan Stanley economist Ellen Zentner, Powell stated, “This is not a committee that feels like it’s in a hurry to cut rates quickly.” He indicated that, if the economy performs as expected, there could be two more rate cuts this year, totaling 50 basis points.
Currently, the federal funds rate stands at 4.75%-5%. With the anticipated cuts, the rate could decrease to 4.25%-4.5% by the end of 2024.
In Asia, attention is on the Bank of Japan’s (BOJ) Tankan survey, which measures business optimism among large Japanese companies. Optimism among manufacturers remained steady at +13, while non-manufacturers saw a slight improvement, rising to +34 from +33. Additionally, Japan’s unemployment rate for August eased to 2.5%, down from 2.7% in July.
Several Asian markets, including South Korea, Hong Kong, and mainland China, were closed for a public holiday. Mainland China will remain closed for the rest of the week due to the Golden Week holiday.
In Japan, the Nikkei 225 rebounded 2.13%, recovering from a sharp decline on Monday, while Australia’s S&P/ASX 200 slipped 0.97%. In the U.S., the S&P 500 and Dow Jones Industrial Average both reached record highs on Monday, with gains of 0.42% and marginal increases, respectively.
The post Tuesday 1st October 2024: Asia-Pacific Markets Mixed as Fed Signals Cautious Cuts first appeared on IC Markets | Official Blog.
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