- World markets await signals on further interest rate cuts after the first Federal Reserve cut of 2025. The dollar stabilizes at four-year lows against the euro ahead of the decision. U.S. stocks stall as rate cut bets gravitate to 25 basis points after strong retail sales growth in August. Gold backs off, but U.S. long bonds rally with the 30-year yield hitting a 4-1/2 month low.
- Hong Kong shares close at four-year highs, boosted by expected Fed cut and strong local tech stocks. Confidence in China’s AI capabilities rises, and U.S. President Donald Trump’s TikTok deal lifts risk assets. Nvidia slips on weak China demand and regulator warnings. Euro surges against a weakening dollar, but China’s offshore yuan remains strong.
- President Trump announces TikTok deal, and U.S. and UK agree on a technology pact. Trump pushes to nix quarterly corporate disclosures, and the Trump administration criticizes the Fed’s inflation control. The rush to hedge U.S. equity exposure challenges the ‘de-dollarization’ theory.
- The Fed prepares for its first interest rate cut of the year amidst strong economic indicators. Events to watch include U.S. housing starts/permits, Bank of Canada policy decision, Federal Reserve policy decision, ECB President Lagarde’s speech, and Trump’s visit to Britain. U.S. corporate earnings from General Mills and Progressive are expected.
Read more at Yahoo Finance: Ailing dollar gets toehold as Fed awaited