pcloudyn.png
Monday July 22nd, 2019 6:25AM

World shares advance after Fed signals US rate cut likely

By The Associated Press
Related Articles
  Contact Editor

BANGKOK (AP) — Shares rose Thursday in Europe and Asia, tracking gains on Wall Street after Federal Reserve Chairman Jerome Powell suggested the U.S. central bank is ready to cut interest rates for the first time in a decade.

Germany's DAX edged less than 0.1% higher to 12,377.95 and the CAC 40 in France added 0.2% to 5,577.95. Britain's FTSE 100 picked up 0.2% to 7,546.21. Wall Street looked set to extend its winning streak, with the future contract for the Dow Jones Industrial Average up 0.2% to 26,909.00. The future for the S&P 500 also gained 0.2%, to 3,003.00.

The Fed chairman told Congress in his semi-annual report that many in the U.S. central bank believe a weakening global economy and rising trade tensions have strengthened the case for a rate cut. That allayed investors' concerns that unexpectedly strong U.S. jobs data reported Friday might give the Fed reason to stay put on interest rates.

In Asia, Hong Kong's Hang Seng jumped 0.8% to 28,431.80, while the Shanghai Composite index edged 0.1% higher to 2,917.76. In Japan, the Nikkei 225 index climbed 0.5% to 21,643.53 and South Korea's Kospi advanced 1.1% to 2,080.58. Australia's S&P ASX 200 gained 0.4% to 6,716.10. Shares also rose in Taiwan and Southeast Asia.

"Local equity markets are reveling in the best of both worlds this morning as local investors love nothing more than lower U.S. interest rates and a weaker U.S. dollar," Stephen Innes of Vanguard Markets said in a commentary.

The U.S. stock market rallied through much of June after the Fed first signaled that it might cut rates if necessary to shore up the U.S. economy.

In his prepared statement, Powell said that since Fed officials met last month, "uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook." Meanwhile, inflation has fallen farther from the Fed's target.

The Fed's benchmark rate currently stands in a range of 2.25% to 2.5% after the central bank raised rates four times last year. Many investors have put the odds of a rate cut this month at 100%.

A quarter-point cut in interest rates, which many investors expect, isn't likely to have a big impact on consumers' credit cards or mortgage rates. But it would reassure markets that the Fed would be open to further rate cuts if more signs of weakness in the global economy emerge.

Powell is due to appear before the Senate Banking Committee on Thursday. In the meantime, U.S. consumer inflation data are a focus for traders later Thursday.

Investors will have to wait until the end of the month to see what action the Fed takes on interest rates at its next meeting of policymakers.

Retaliatory tariffs remain another worry for markets.

While China-U.S. trade tensions have calmed with a resumption of talks by phone between top envoys, friction with France looms after President Donald Trump's administration launched an investigation into French plans for a special tax targeting big tech companies.

ENERGY: Benchmark U.S. crude oil picked up 33 cents to $60.76 per barrel in electronic trading on the New York Mercantile Exchange. On Wednesday, it jumped $2.60 to settle at $60.43 a barrel, the highest level since late May.

Brent crude oil, the international standard, added 40 cents to $67.41 per barrel. Overnight, it gained $2.85 to close at $67.01 a barrel.

CURRENCIES: The dollar fell to 108.10 Japanese yen from 108.45 yen on Wednesday. The euro strengthened to $1.1268 from $1.1250.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
World shares advance after Fed signals US rate cut likely
World shares gain after Fed's Powell suggests US central bank may cut interest rates for 1st time in a decade
5:07AM ( 11 minutes ago )
Britain says Iranian vessels tried to block tanker in Gulf
The British navy says it has prevented three Iranian paramilitary vessels from impeding the passage of a British oil tanker in the Strait of Hormuz, a day after Iran's president warned of repercussions for the seizure of its own supertanker
4:59AM ( 18 minutes ago )
AP Exclusive: Officer accuses general of sexual misconduct
A senior military officer has accused the Air Force general tapped to be the next vice chairman of the Joint Chiefs of Staff of sexual misconduct
4:54AM ( 23 minutes ago )
Associated Press (AP)
South Korea seeks US help in bitter trade spat with Japan
South Korea seeks US help in row with Japan over tightened controls on high-tech exports
4:03AM ( 1 hour ago )
Britain says Iranian vessels tried to block ship in Gulf
The British navy says it has prevented three Iranian paramilitary vessels from impeding the passage of a British commercial ship in the Strait of Hormuz, a day after Iran's president warned of repercussions for the seizure of its own supertanker
3:55AM ( 1 hour ago )
Passenger train hits freight train in Pakistan, killing 10
A passenger train has rammed into a freight train in southern Pakistan killing at least 10 people and injuring 64 others
1:53AM ( 3 hours ago )
AP Business
Seoul wants Washington to mediate in trade spat with Tokyo
South Korea is asking the United States to mediate in its bitter diplomatic row with Japan over Tokyo's moves to tighten controls on high-tech exports to its neighboring U.S. ally
11:34PM ( 5 hours ago )
California Democrats turn up pressure on gig economy
The battle between California lawmakers and major employers such as Uber and Lyft is heating up
7:30PM ( 9 hours ago )
The Latest: Markets end up after Powell hints at rate cut
Fed Chairman Powell testimony to Congress, minutes from Fed meeting in June point to rate cut
7:23PM ( 9 hours ago )
AP Business - Economy
Powell signals that rate cut could be coming soon
Powell sends strong signal that Fed is prepared to cut rates in light of rising uncertainties
12:11PM ( 17 hours ago )
The Latest: Powell says deficits on 'unsustainable path'
Fed Chairman Powell says federal government budget deficits on 'unsustainable path'
12:09PM ( 17 hours ago )
The Latest: Powell says pay gains too slow to lift inflation
Fed Chairman Powell says wage gains too slow to accelerate inflation
11:27AM ( 17 hours ago )
AP Business - Financial Markets
New holding center for migrant children opens in Texas
A former oilfield worker camp off a dirt road in rural Texas has become the U.S. government's newest facility for detaining immigrant children after they leave Border Patrol stations
7:42PM ( 9 hours ago )
Ukraine: Chernobyl's radioactive dust shelter unveiled
A structure built to confine radioactive dust from the nuclear reactor at the center of the 1986 Chernobyl disaster is up and running
3:55PM ( 13 hours ago )
The Latest: Acosta: Prosecution appropriate in Epstein case
Labor Secretary Alex Acosta says that when he was a federal prosecutor in Florida, his office acted appropriately when it came to the secret plea deal offered to hedge fund manager Jeffrey Epstein a decade ago in a molestation case
3:10PM ( 14 hours ago )
AP Business - Industries
Powell testimony to be studied for signs of coming rate cut
Powell's testimony to Congress will be studied for any signs of a coming rate cut
6:54AM ( 22 hours ago )
Asian shares mostly higher ahead of Fed chief testimony
Asian shares are mostly higher in cautious trading ahead of closely watched congressional testimony by Fed chair
11:34PM ( 1 day ago )
S&P 500 snaps 2-day losing streak; mixed finish for stocks
Wall Street capped a day of listless trading Tuesday with modest gains, narrowly avoiding a three-day losing streak for the S&P 500 index
5:00PM ( 1 day ago )
AP Business - Financial Services
Britain says Iranian vessels tried to block tanker in Gulf
The British navy says it has prevented three Iranian paramilitary vessels from impeding the passage of a British oil tanker in the Strait of Hormuz, a day after Iran's president warned of repercussions for the seizure of its own supertanker
4:59AM ( 19 minutes ago )
AP Exclusive: Officer accuses general of sexual misconduct
A senior military officer has accused the Air Force general tapped to be the next vice chairman of the Joint Chiefs of Staff of sexual misconduct
4:54AM ( 23 minutes ago )
N. Korea vows to respond to South's deployment of F-35 jets
North Korea has slammed South Korea for deploying U.S. stealth fighter jets, warning that it will respond by developing unspecified special weapons of its own
4:38AM ( 39 minutes ago )
Ex-UN chief concerned over monsoon floods in Rohingya camps
Former U.N. Secretary-General Ban Ki-moon has expressed concern over risks of monsoon floods threatening the lives of Rohingya refugees in sprawling camps in Bangladesh
4:34AM ( 44 minutes ago )
South Korea seeks US help in bitter trade spat with Japan
South Korea seeks US help in row with Japan over tightened controls on high-tech exports
4:03AM ( 1 hour ago )