Fed rate cut breathes new life into stocks
|Markets have given the Fed three cheers for its 50bps cut, as stocks stride higher around the globe, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Equity rally continues a day after the Fed
“Investors seem very pleased with the Fed’s 50bps cut and its optimistic assessment of the US economy. Stock markets across the globe have made headway, confident that the US central bank has their back. New record highs for the Dow and S&P 500 seem to lead the way for other indices, with no sign yet of any of the weakness that often bedevils the second half of September.”
Bank of England bolsters Sterling with rate hold
“Sterling has pushed to a new 2.5 year high versus the dollar, briefly topping the $1.33 mark once more. Unlike the Fed, the UK still has to bring its inflation problem to heel, leaving Threadneedle Street unable to loosen policy. The onus now lies on the still newly-elected government to unveil a targeted programme of growth in order to provide the boost that the UK economy needs.”
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