Breaking News: U.S. and Global Markets on the Rise with China's Monetary Easing and Wall Street's Record Highs
As the last full week of the quarter comes to a close, U.S. stocks are hitting new records, fueled by China's aggressive monetary easing and Wall Street's anticipation of the Fed's inflation gauge release.
China's central bank cut its one-week reverse repo rate by 20 basis points, signaling concerns over an economic slowdown. Chinese cities Shanghai and Shenzhen are also lifting restrictions on home purchases to boost real estate markets.
Despite China's industrial profits plunging, mainland stocks indexes surged, marking their best week in a while. Meanwhile, on Wall Street, the strong U.S. economy was highlighted by positive economic indicators.
Attention is now on inflation, with the release of the August PCE gauge. The Fed's projected easing path may be influenced by these numbers, especially as Treasury Secretary Janet Yellen suggests a 'soft landing' for the economy.
Looking ahead, the market sees a 50% chance of another 50-bp cut at the Fed's next meeting, with some expecting a total of 75 bps by year-end.
Overall, the global economy is facing challenges, with Europe's inflation numbers driving pressure on the ECB to cut rates further. With crude prices declining and unemployment rising in Germany, the economic landscape remains uncertain.
Bottom line: Investors should keep a close eye on inflation data, central bank decisions, and global economic indicators to make informed investment choices in these volatile times.