Global stock markets are set for a positive weekly close following the Fed’s jumbo rate cuts. The Bank of England’s hawkish rhetoric has kept the Pound at a two-and-a-half-year high. Equity markets worldwide are poised for a positive close this week, buoyed by the Federal Reserve’s significant rate cut, which has spurred optimism about loosening liquidity.
Stocks more exposed to high debt levels, particularly in the technology sector and among small-cap firms, have continued to outperform. Meanwhile, the US dollar has continued to weaken, benefiting commodity prices. Gold has reached a new high, while crude oil has experienced a notable rebound, alongside gains in silver and copper.
Cryptocurrencies have also followed this trend, with Bitcoin rising to a three-week high. Major benchmarks are set to finish the week higher, buoyed by growing risk-on sentiment. The Euro Stoxx 600 rose by 1.
7%, the DAX climbed by 1.62%, the CAC 40 advanced by 2.01%, and the FTSE 100 increased by 0.
67%. Mirroring Wall Street’s trend, the European technology sector experienced strong gains in response to the Fed’s rate cut, leading to a likely positive weekly close for major stocks. ASML shares jumped by 4.
6%, while SAP rose by 3.27% on Thursday. Over the past five trading days, the two stocks recorded increases of 3% and 4.
1%, respectively. Mining and energy stocks also outperformed due to robust commodity prices, with Rio Tinto up 1.34%, Glencore shares rising by 4.
55%, Anglo American j.