Rally rumbles on following US rate cut
|Yesterday's Fed cut has delivered the goods for investors, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
Stocks buoyed by Fed rate cuts
The apparently unstoppable rally grinds on. Stocks held up well in the wake of last night’s rate cut and have continued to move higher. September seems likely to witness the Dow and the Nikkei 225 crossing the 46,000 threshold for the first time. While the Fed seems evenly split on what might happen next, equity markets at least have chosen to ignore this, confounding expectations of a September selloff.
Sterling sinks versus the dollar
Sterling continues to ease back from the overnight highs despite the BoE holding rates unchanged. Bearish positioning in the dollar has run its course for now, which points towards an extended period of weakness for both sterling and the euro. This should help to support UK and European stocks, which have seen investor enthusiasm cool in recent weeks.
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