Ipek Ozkardeskaya
Swissquote Bank Ltd
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.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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