{"id":106134,"date":"2024-09-19T11:09:27","date_gmt":"2024-09-19T07:09:27","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=106134"},"modified":"2024-09-19T11:09:29","modified_gmt":"2024-09-19T07:09:29","slug":"european-stocks-rise-following-feds-aggressive-rate-cut-focus-shifts-to-boe-decision","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/european-stocks-rise-following-feds-aggressive-rate-cut-focus-shifts-to-boe-decision\/09\/19\/market-updates\/","title":{"rendered":"European Stocks Rise Following Fed&#8217;s Aggressive Rate Cut, Focus Shifts to BoE Decision"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>European stock markets saw strong gains on Thursday, buoyed by the <strong>Federal Reserve&#8217;s aggressive rate cut<\/strong> and investor anticipation ahead of the <strong>Bank of England&#8217;s (BoE) policy decision<\/strong>.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Germany&#8217;s DAX<\/strong> was up <strong>0.9%<\/strong>,<\/li><li><strong>France&#8217;s CAC 40<\/strong> rose <strong>1.4%<\/strong>, and<\/li><li><strong>The UK&#8217;s FTSE 100<\/strong> climbed <strong>0.9%<\/strong> as of 03:05 ET (07:05 GMT).<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Fed&#8217;s Aggressive Start to Easing Campaign<\/strong><\/h3>\n\n\n\n<p>The Federal Reserve cut interest rates by <strong>50 basis points<\/strong> on Wednesday, lowering its benchmark rate to a range of <strong>4.75% to 5%<\/strong>. This move marked the <strong>first rate cut since March 2020<\/strong> as the Fed began an aggressive easing cycle aimed at stabilizing the U.S. economy after a prolonged struggle with inflation. The Fed also signaled two more 25 bps cuts in 2024, increasing the number of projected cuts from one in its June outlook.<\/p>\n\n\n\n<p>While concerns about the <strong>strength of the U.S. economy<\/strong> were raised due to the aggressive rate reduction, <strong>Fed Chair Jerome Powell<\/strong> reassured markets by stating that the risks of higher inflation and a weakening labor market are now balanced.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>BoE Decision Expected to Hold Steady<\/strong><\/h3>\n\n\n\n<p>Attention is now focused on the <strong>Bank of England (BoE)<\/strong>, which is expected to keep its benchmark interest rate unchanged at <strong>5.0%<\/strong> during its policy-setting meeting later today. The BoE previously cut rates in August, and policymakers are likely to maintain a cautious stance to avoid easing too quickly.<\/p>\n\n\n\n<p>Despite the UK\u2019s <strong>annual consumer price inflation<\/strong> being in line with the BoE&#8217;s medium-term target at <strong>2.2%<\/strong> in August, <strong>services inflation<\/strong> remains high at <strong>5.6%<\/strong>, a potential concern for policymakers as they navigate a fragile economic recovery.<\/p>\n\n\n\n<p>This mix of inflation dynamics suggests that the BoE will likely tread carefully, balancing the need to control inflation with the need to support growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>European stock markets saw strong gains on Thursday, buoyed by the Federal Reserve&#8217;s aggressive rate cut and investor anticipation ahead of the Bank of England&#8217;s (BoE) policy decision. Germany&#8217;s DAX was up 0.9%,France&#8217;s CAC 40 rose 1.4%, andThe UK&#8217;s FTSE 100 climbed 0.9% as of 03:05 ET (07:05 GMT). Fed&#8217;s Aggressive Start to Easing Campaign &hellip;<\/p>\n","protected":false},"author":9,"featured_media":105788,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[7211,6877,6928,6882],"class_list":["post-106134","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-currencies","tag-dollar","tag-euro","tag-forex"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=106134"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106134\/revisions"}],"predecessor-version":[{"id":106135,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106134\/revisions\/106135"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/105788"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=106134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=106134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=106134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}