Daily Report

19 de Setembro de 2024
Financial Markets | daily report 19.09.2024
  • The Federal Reserve kicked off its monetary easing cycle with a 50 bp interest rate cut, taking the policy rate to 4.75% - 5.00%. The FOMC cited "greater confidence" that inflation is moving sustainably to its 2% target and judged that the risks to its dual mandate are "roughly in balance". The committee sees rates falling another 50bp by year end.
  • Following the announcement, Treasury yields fell, by as much as 10 bp in the 2-year benchmark, and US equities rose. The tide turned as the session progressed: yields ended the day higher, and stocks posted modest losses. By the end of the session, rate markets were pricing in 75bp of additional cuts this year.
  • In the euro area, markets traded on a risk-off tone in anticipation of the Fed. The main equity indices all ended lower and sovereign bond yields rose 6 bp on average. The euro held steady against most of its counterparts. Today, all eyes will be on the BoE's decision, expected to keep interest rates unchanged.