PBoC, RBA cut rates, Fed members maintain hawkish stance [Video]
![PBoC, RBA cut rates, Fed members maintain hawkish stance [Video]](https://editorial.fxsstatic.com/images/i/china-people-bank-01_XtraLarge.jpg)
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.
