ECB to cut rates, shift focus to growth [Video]
|The probability of a Federal Reserve (Fed) rate cut in December jumped to nearly 100% yesterday, after the US CPI update came in line with expectations. Major indices rally with joy. Technology stocks led gains, but enthusiasm was not only backed by the Fed cut expectations. It was also backed by tech related news. Google for example jumped nearly 5.5% to a record high on news that the company made a ‘major development’ in quantum computing using its Willow quantum chip while Broadcom – that’s due to announce earnings today - flirted with ATH yesterday on news that they are developing an AI chip with Apple.
In Europe, the news are much less future-oriented and exciting, to be honest. But the Stoxx 600 is better bid on hope that the European Central Bank (ECB) will step up its support to the economy. In this context, the ECB is expected to deliver another 25bp cut at today’s meeting, and maybe more!
Other than the ECB, the BoC cut by 50bp yesterday, and the SNB could opt for 50bp to counter the franc’s appreciation.
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