Fed rate-cut bets boost stocks, while Nvidia declines – Asia Market Wrap
Tech stocks helped global markets gain for a third day, boosted by rising prospects of a Fed rate cut in December.
The MSCI All Country World Index increased by up to 0.1% after additional Fed officials expressed support for a rate drop, lifting optimism. Asian stocks rose 0.4%, with tech companies like TSMC among the winners. Gold, which normally benefits from lower interest rates, has extended its gains to around $4,150 per ounce.
US equity-index futures were barely changed, while contracts projected a slight dip in European markets at the open. Stocks in Hong Kong and China rose after Trump and Xi Jinping held their first discussions since agreeing to a tariff truce last month.
Following weeks of shifting expectations, money markets now expect the Fed to drop interest rates at its forthcoming December meeting by almost 90%.
In other market news, Bitcoin maintained its turbulent trading, sliding lower after a two-session rally. Oil dipped as progress in Ukraine peace talks, which could open the door for higher supplies, offset a risk-on sentiment in global markets.
