From Kuwait Times: 2024-06-06 18:26:10

World stocks hit an all-time high after the European Central Bank cut interest rates for the first time in nearly five years. The euro rose to almost $1.0890 against the dollar. Government bond yields ticked up. MSCI’s 47-country main world index rose 0.3%, hitting a record high.

The focus is on whether the ECB will cut rates again in September, following a quarter-point cut to 3.75 percent. Chief economist Marchel Alexandrovich mentioned that inflation forecasts have been revised up. The euro gained after Christine Lagarde mentioned no pre-commitment to a specific rate path.

The Bank of Canada was the first G7 country to cut rates this cycle. The US Federal Reserve is expected to move in September. The Bank of Japan will debate whether to raise rates. Markets are now pricing nearly two quarter-point Fed cuts this year. Gold gained, and Brent crude futures rose as well.



Read more at Kuwait Times: World stocks at record high after cautious ECB cut