Rate Cut Hopes Rise As PCE Inflation Eases As Expected

Slowing inflation and renewed rate cut hopes supported market sentiment, a day after the release of the Fed-preferred PCE inflation readings from the U.S. Gains were however limited as the less-than-expected easing in inflation in the Euro Area dampened sentiment.

Wall Street Futures imply weak sentiment. Major European benchmarks are trading higher. Asian shares finished on a positive note.

The Dollar Index edged down amidst a spurt in rate cut hopes. Bond yields however moved in a mixed fashion. Crude oil prices jumped as markets speculated on potential OPEC+ supply cuts and rising geopolitical tensions. PCE-Price Index easing as expected lifted the yellow metal to month-high levels. Cryptocurrencies declined.

Here is a glimpse of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 38,950.30, down 0.12%
S&P 500 (US500) at 5,090.30, down 0.12%
Germany’s DAX at 17,766.05, up 0.50%
U.K.’s FTSE 100 at 7,681.16, up 0.67%
France’s CAC 40 at 7,925.48, down 0.02%
Euro Stoxx 50 at 4,887.55, up 0.20%
Japan’s Nikkei 225 at 39,940.00, up 1.92%
Australia’s S&P ASX 200 at 7,745.60, up 0.61%
China’s Shanghai Composite at 3,027.02, up 0.39%
Hong Kong’s Hang Seng at 16,589.44, up 0.47%

Currencies:

EUR/USD at 1.0815, up 0.11%
GBP/USD at 1.2633, up 0.08%
USD/JPY at 150.44, up 0.31%
AUD/USD at 0.6503, up 0.12%
USD/CAD at 1.3574, down 0.01%
Dollar Index at 104.08, down 0.07%

Ten-Year Govt Bond Yields:

U.S. at 4.234%, down 0.40%
Germany at 2.4325%, up 1.19%
France at 2.919%, up 1.42%
U.K. at 4.1680%, up 1.09%
Japan at 0.702%, down 1.89%

Commodities:

Brent Oil Futures (May) at $83.12, up 1.48%.
Crude Oil WTI Futures (Apr) at $79.44, up 1.51%.
Gold Futures (Apr) at $2,063.25, up 0.42%.

Cryptocurrencies:

Bitcoin at $62,082.74, down 1.28%
Ethereum at $3,409.92, down 1.87%
BNB at $407.94, down 0.83%
Solana at $134.29, up 4.19%
XRP at $0.5926, down 1.16%.

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