Stocks Fall After a Busy Week While the Dollar Continues to Rise – Europe Market Wrap
US stocks are set for a subdued end to a tumultuous week that saw the Fed’s first step in an anticipated sequence of quick interest rate cuts rocket markets to new highs. The Dollar climbed for the third consecutive day.
Futures for major US market benchmarks remained relatively unchanged after the S&P 500, Nasdaq 100, Dow Jones Industrial Average, and Russell 2000 all set new highs. The yield on 10-year Treasuries increased 1bp to 4.12%. The Dollar edged up 0.1%, putting the currency on track for its longest winning streak since July.
Investors still see much to keep equities rising following a stellar gain, with looser policy contributing to the optimistic momentum from strong earnings and a solid economy. That progress has resisted seasonal obstacles, prompting strategists to raise their year-end forecast.
The Yen climbed as much as 0.5% after two dissenters opposed the decision to hold, but gave up the gain when Ueda said he needs more data before deciding next steps.
UK gilts plummeted, and the Pound fell to its lowest level in a week, as government borrowing exceeded expectations in August. The statistics were a big setback for Chancellor Reeves ahead of a difficult budget speech, highlighting the dire state of public finances.
