Global Stocks Surged On Fed's Dovish Signal
Published on: Dec 14, 2023|1 min read
London: 14 December 2023 (TraderMade): Fueled by whispers of future rate cuts, global stocks surged to their highest level in over a year and a half. The US Fed's dovish signal sent borrowing costs and the dollar tumbling, with European markets poised to follow suit.
Key Points:
- Fed hints at easing, sparking a rally across asset classes, including Asia's highest one-day jump in a month.
- European markets primed for potential rate cuts from ECB and BOE.
- Global borrowing costs plummet, with yields at multi-month lows.
- The Hungarian leader's stance on Ukraine casts a shadow over the EU summit.
- The US dollar fell, with the 10-year Treasury yield breaking below 4%.
- Gold and oil prices rose on market optimism.
Popular indices: latest update (At about 12:49 PM GMT)
Compared to Tuesday's Close,
- Nasdaq 100 (NAS100) climbed 1.54% to 16655
- Dow Jones Industrial Average (USA30) rose by 1.68% to 37269
- S&P 500 (SPX500) increase by 1.65% to 4728.25
- FTSE 100 (UK100) surged 1.86% to 7702.4
In a nutshell: The Fed's shift toward dovishness triggered a global market rally, with expectations for rate cuts now rippling across Europe. While political tensions add a layer of complexity, the focus remains on central bank decisions and their potential impact on the economic landscape.
