PBoC, RBA cut rates, Fed members maintain hawkish stance [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

The People’s Bank of China (PBoC) and the Reserve Bank of Australia (RBA) lowered their interest rates today, hoping to tame and counter the negative impact of the global trade war on their economies and job markets. The moves were expected and received mixed reactions across stock markets.

The CSI 300 index and the Hang Seng gained, the latter was boosted by CATL’s IPO, which went according to plan and led to a 14% surge in its Hong Kong debut. Meanwhile, the ASX gave back earlier gains as trade headlines are turning sour.

In Europe, the EU and the UK sealed their most comprehensive deal since Brexit and pledged ‘to discuss British access’ to Europe’s €150 billion defense fund. The Stoxx Europe Aerospace & Defence ETF soared 2% to a fresh high. In the US, investors shrugged off rating downgrade news, yields reversed advance, the S&P500 eked out small gain. Nvidia’s plans to open the door to third-party chips in its AI infrastructure was applauded. Home Depot and Lowe’s earnings are in focus as investors complete the US consumer picture in the midst of trade turmoil.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

EUR/USD weakens below 1.1650 as strong US data boosts Fed hold outlook

EUR/USD extends its losses for the third consecutive session, trading around 1.1640 during the Asian hours on Thursday. The pair loses ground as the US Dollar advances as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.

GBP/USD holds above 1.3400 after UK GDP data

GBP/USD holds above 1.3400 in European trading, fading a spike to near 1.3450. The pair jumped on the upbeat UK growth and industrial data but failed to hold the uptick amid a broadly firmer US Dollar. The focus now turns to the mid-tier US data releases for further directives.

Gold trades near $4,600 after pulling back from record highs

Gold loses ground after hitting a fresh record high of $4,643 in the previous session, trading around $4,600 per troy ounce on Thursday. The non-interest-bearing Gold lost ground as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.