- China says to take anti-dumping measures against EU brandy imports
- German suspect in 'Maddie' case cleared in separate sex crimes trial
- Israel expands offensive against Hezbollah in south Lebanon
- Bangladesh's Yunus says no elections before reforms
- England strike twice as Pakistan reach 397-6 at lunch in first Test
- Taiwan's Foxconn says building world's largest 'superchip' plant
- Kenya's deputy president faces impeachment vote
- N. Korean soldiers 'highly likely' killed in Ukraine: Seoul
- 'Appeals Centre' to referee EU social media disputes
- US Supreme Court to hear 'ghost guns' regulation case
- 'Small' oil leaks detected in Samoa after NZ navy shipwreck
- Nobel literature jury may go for non-Western writer
- At Istanbul church, blessed spring offers hope to Christians and Muslims
- From Bolivia to Indonesia, deforestation continues apace
- Myanmar to send rep to regional summit for first time in three years
- Prabowo set to lead bolder Indonesia on world stage
- Tampa zoo rushes Chompers the porcupine and others to safety as Milton nears
- New Japan PM to hold talks on ASEAN sidelines
- Record number of climbers chase 14-peak dream in Tibet
- Former South Korea clinic for US 'comfort women' to be demolished
- Chiefs battle past Saints to stay unbeaten
- Deal on climate aid hangs in balance at UN COP29 summit
- Royals hit back against Yankees, Tigers maul Guardians
- German suspect in 'Maddie' case faces verdict in sex crimes trial
- Top economic official 'confident' China will hit 2024 growth target
- COP29 fight looms over climate funds for developing world
- Shanghai stocks soar to extend stimulus rally amid Asia-wide drop
- Australia moves to expand Antarctic marine park
- Tragedy of Madrid street sweeper highlights how heatwaves kill
- Survivors wait for aid as Trump's lies help cloud Helene response
- Fleeing Israeli bombs, Lebanon's displaced met with suspicion
- Jila Mossaed, from refugee poet to Swedish Academy
- Will Tesla's robotaxi reveal live up to hype?
- Drugs, people smuggling at heart of Mexico's raging violence
- 'Invisibility' and quantum computing tipped for physics Nobel
- Musk says he is 'all in' on Trump in US election
- Category 5 Hurricane Milton roars towards storm-battered Florida
- Carpenter bomb stuns Guardians as Tigers level series
- Harris, Trump and Biden mark Oct. 7 attacks as US election looms
- US judge orders Google to open Android to rival app stores
- On attacks anniversary, Israel fights 'sacred' multi-front war
- Nobel scientist uncovered tiny genetic switches with big potential
- Grammy-winning Cissy Houston, mother of Whitney, dies at 91
- UN biodiversity summit in Colombia aims to turn words into action
- Georgia Supreme Court reinstates six-week abortion ban
- 'Dark day': Victims mourned around the globe on Oct. 7 anniversary
- On attacks anniversary, Israel fights multi-front war
- Intensifying to Category 5, Hurricane Milton targets Florida
- Biden, Harris mark Oct. 7 with call for Mideast peace
- Dupont set for Toulouse return after post-Olympic holiday
CMSC | -0.53% | 24.57 | $ | |
JRI | -0.76% | 13.18 | $ | |
CMSD | -0.09% | 24.79 | $ | |
SCS | -0.15% | 12.95 | $ | |
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BCC | 1.68% | 141.27 | $ | |
GSK | -0.49% | 38.63 | $ | |
BCE | -0.54% | 33.53 | $ | |
BTI | -0.26% | 35.2 | $ | |
RYCEF | -0.15% | 6.87 | $ | |
RBGPF | 100% | 60.52 | $ | |
AZN | -0.78% | 76.87 | $ | |
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VOD | 0.31% | 9.69 | $ | |
RELX | -0.54% | 46.04 | $ |
Stock markets rise after Powell hints at US rate cut
Asian and European stock markets rose Thursday following more record-highs on Wall Street as Federal Reserve boss Jerome Powell hinted at a September cut to US interest rates.
On a second day of testimony to lawmakers, Powell said decision-makers would not wait until inflation had hit the bank's two percent target before loosening monetary policy, adding: "If you waited that long, you've probably waited too long."
That weighed on the dollar, while official data showing Britain's economy has grown faster than thought boosted the pound, with analysts saying it could force the Bank of England to delay cutting interest rates until September.
In the US, Powell's remarks came before Thursday's update of the US consumer price index, which is expected to show a further slowdown.
"Investors have been putting their chips on the table and betting on inflation's path ahead of today's CPI print," noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Traders ramped up bets on the Fed reducing borrowing costs in two months' time, with analysts saying Powell was telegraphing to markets that the decision had been made.
The comments soothed recent fears among investors that officials might keep rates at their two-decade high for some time owing to a still strong labour market and inflation staying stubbornly above two percent.
The S&P 500 ended with a sixth straight record Wednesday, while the Nasdaq also finished at an all-time peak.
The upbeat mood filtered through to Asia Thursday, where Hong Kong stocks jumped two percent and Tokyo, Shanghai and Sydney all rose.
London stocks gained and the pound hit a four-month high against the dollar, also as official data showed the UK economy grew last month at a faster pace than expected. Paris and Frankfurt also advanced.
Eyes are also turning to the start of China's Third Plenum gathering on Monday, where top officials including President Xi Jinping are expected to discuss ways to kickstart the world's number two economy in the face of an ongoing property crisis and geopolitical issues.
However, while there is hope for some sort of major policy announcement, commentators remain cautious.
Andrew Batson, of Beijing-based consultancy Gavekal Dragonomics, told AFP he did not expect a "fundamental departure from the course Xi has already laid out", in which technological self-sufficiency and national security outweigh economic growth.
Nomura's Ting Lu added that the meeting was "intended to generate and discuss big, long-term ideas and structural reforms instead of making short-term policy adjustments".
Economic growth in the first quarter of the year came in above forecasts and is tipped to top the government's five percent goal for April-June, but the meeting comes amid ongoing concerns that officials are not providing enough support.
Taylor Nugent at National Australia Bank warned: "Further monetary policy easing is constrained by a reluctance to allow further depreciation in the renminbi, and expectations are low for any big policy shift at the Third Plenum."
- Key figures around 1100 GMT -
London - FTSE 100: UP 0.2 percent at 8,213.57 points
Paris - CAC 40: UP 0.3 percent at 7,598.10
Frankfurt - DAX: UP 0.2 percent at 18,436.73
EURO STOXX 50: UP 0.3 percent at 4,974.62
Tokyo - Nikkei 225: UP 0.9 percent at 42,224.02 (close)
Hong Kong - Hang Seng Index: UP 2.1 percent at 17,832.33 (close)
Shanghai - Composite: UP 1.1 percent at 2,970.39 (close)
New York - Dow: UP 1.1 percent at 39,721.36 (close)
Pound/dollar: UP at $1.2877 from $1.2848 on Wednesday
Euro/dollar: UP at $1.0850 from $1.0833
Dollar/yen: DOWN at 161.54 yen from 161.71 yen
Euro/pound: DOWN at 84.27 pence from 84.29 pence
Brent North Sea Crude: UP 0.4 percent at $85.42 per barrel
West Texas Intermediate: UP 0.3 percent at $82.31 per barrel
N.Esteves--PC