World stocks hit record highs after ECB rate cut, but further cuts may be delayed

From Channel NewsAsia: 2024-06-06 13:59:00

World stocks reached all-time highs and the euro strengthened after the European Central Bank cut interest rates for the first time in nearly five years. However, the bank also indicated that further moves might be delayed as inflation is not expected to reach target levels until 2026.

The ECB implemented a quarter-point cut to 3.75%, causing the pan-European STOXX 600 to see gains pared back to 0.6%. Despite this, the main world index rose, with Wall Street showing mixed results, including the S&P 500 hovering near a record high and the Nasdaq Composite dipping slightly.

Chip maker Nvidia experienced a slight drop from its record high after surpassing $3 trillion in market valuation previously. Market analysts are now focused on whether there will be room for further rate cuts in September, as strong data and increased inflation forecasts challenge the necessity of additional cuts this year.



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