Berliner Boersenzeitung - Stocks and gold rise on renewed rate cut hopes

EUR -
AED 4.100449
AFN 75.91327
ALL 99.189323
AMD 432.437101
ANG 2.012667
AOA 1045.484666
ARS 1077.561675
AUD 1.621879
AWG 2.009466
AZN 1.898653
BAM 1.962692
BBD 2.254818
BDT 133.448597
BGN 1.955993
BHD 0.420725
BIF 3231.891338
BMD 1.11637
BND 1.439153
BOB 7.717098
BRL 6.094602
BSD 1.116721
BTN 93.426261
BWP 14.674529
BYN 3.654633
BYR 21880.853275
BZD 2.251004
CAD 1.501032
CDF 3198.960795
CHF 0.942771
CLF 0.036962
CLP 1019.904928
CNY 7.850205
CNH 7.835891
COP 4632.991588
CRC 579.735706
CUC 1.11637
CUP 29.583807
CVE 110.900829
CZK 25.084166
DJF 198.401018
DKK 7.45671
DOP 67.400865
DZD 147.73061
EGP 54.368328
ERN 16.745551
ETB 134.04812
FJD 2.441334
FKP 0.850182
GBP 0.833181
GEL 3.042099
GGP 0.850182
GHS 17.694439
GIP 0.850182
GMD 76.455991
GNF 9626.45927
GTQ 8.632312
GYD 233.640414
HKD 8.691114
HNL 27.763611
HRK 7.590212
HTG 147.578212
HUF 394.351581
IDR 16921.546716
ILS 4.187264
IMP 0.850182
INR 93.356218
IQD 1462.444785
IRR 46990.803228
ISK 151.133962
JEP 0.850182
JMD 176.228817
JOD 0.79117
JPY 160.127101
KES 144.011805
KGS 94.023142
KHR 4549.207868
KMF 493.379948
KPW 1004.732426
KRW 1484.515246
KWD 0.340672
KYD 0.930668
KZT 535.580659
LAK 24652.244563
LBP 100026.757793
LKR 338.368159
LRD 216.436212
LSL 19.357673
LTL 3.29635
LVL 0.675281
LYD 5.302448
MAD 10.798653
MDL 19.492447
MGA 5073.901851
MKD 61.538587
MMK 3625.926424
MNT 3793.425431
MOP 8.955447
MRU 44.342426
MUR 51.207528
MVR 17.147965
MWK 1938.017944
MXN 21.623363
MYR 4.637365
MZN 71.280842
NAD 19.358012
NGN 1816.896102
NIO 41.054447
NOK 11.630438
NPR 149.481897
NZD 1.762727
OMR 0.429769
PAB 1.116721
PEN 4.209835
PGK 4.373101
PHP 62.507234
PKR 310.183776
PLN 4.256119
PYG 8691.519739
QAR 4.064425
RON 4.975886
RSD 117.087873
RUB 103.596342
RWF 1498.168627
SAR 4.188145
SBD 9.276735
SCR 15.076033
SDG 671.495537
SEK 11.288115
SGD 1.434078
SHP 0.850182
SLE 25.506045
SLL 23409.716338
SOS 637.447567
SRD 33.76908
STD 23106.606404
SVC 9.771311
SYP 2804.913208
SZL 19.357807
THB 36.514793
TJS 11.870884
TMT 3.907295
TND 3.413304
TOP 2.614655
TRY 38.09725
TTD 7.598682
TWD 35.609956
TZS 3048.806245
UAH 46.140118
UGX 4131.507535
USD 1.11637
UYU 46.563505
UZS 14250.464136
VEF 4044109.208466
VES 41.044399
VND 27468.28545
VUV 132.537697
WST 3.123004
XAF 658.268469
XAG 0.034687
XAU 0.000421
XCD 3.017046
XDR 0.826101
XOF 658.094866
XPF 119.331742
YER 279.426294
ZAR 19.341117
ZMK 10048.668719
ZMW 29.621012
ZWL 359.470705
  • RBGPF

    3.1000

    60.1

    +5.16%

  • SCS

    0.1100

    13.12

    +0.84%

  • CMSC

    0.0299

    25.1

    +0.12%

  • CMSD

    0.1150

    25.12

    +0.46%

  • NGG

    -0.3700

    70.11

    -0.53%

  • GSK

    0.1200

    40.98

    +0.29%

  • RELX

    -0.3300

    48.53

    -0.68%

  • BCC

    0.1300

    141.78

    +0.09%

  • RIO

    2.8400

    67.42

    +4.21%

  • BTI

    0.2000

    38.1

    +0.52%

  • AZN

    -0.2700

    76.87

    -0.35%

  • RYCEF

    0.0100

    7.07

    +0.14%

  • JRI

    0.1200

    13.42

    +0.89%

  • BCE

    0.0300

    35.13

    +0.09%

  • BP

    -0.0300

    32.83

    -0.09%

  • VOD

    -0.0200

    10.09

    -0.2%

Stocks and gold rise on renewed rate cut hopes
Stocks and gold rise on renewed rate cut hopes / Photo: Kirill KUDRYAVTSEV - AFP/File

Stocks and gold rise on renewed rate cut hopes

Stock markets rose on both sides of the Atlantic and gold hit new records Thursday as the both the European and US central banks indicated interest rate cuts could be on the way later this year.

Text size:

The European Central Bank, as expected, kept its rates unchanged for a fourth straight meeting on Thursday, but the Frankfurt-based institution lowered its inflation forecast, expecting consumer prices to increase more slowly than previously thought this year and return to its two-percent target in 2025.

"The path for future rate cuts could be in place, after a symbolic cut to both the headline and core inflation forecasts for this year," said Kathleen Brooks, research director at XTB.

Salomon Fiedler, an economist at Berenberg, said that "once it feels confident in its success in the fight against inflation, we expect the ECB will cut rates by 25 basis points in June, followed by two more such moves in the second half of 2024 and a final one in the first quarter of 2025."

Markets continued also to be boosted Thursday by US Federal Reserve chief Jerome Powell's comments before Congress on Wednesday.

Powell flagged progress on bringing inflation towards the Fed's two percent goal and said borrowing costs could be lowered as a result.

"If the economy evolves broadly as expected, it will likely be appropriate to begin dialling back policy restraint at some point this year," Powell told the House Financial Services Committee.

"But the economic outlook is uncertain, and ongoing progress toward our two percent inflation objective is not assured," said Powell, who appears before the Senate on Thursday.

With Powell warning that the battle against inflation was far from over, investors are expecting the first cut in June after earlier hopes for a March move were scrubbed by a strong inflation report last month and continued strength in the labour market.

"Powell and Company probably want to see the strength in the labor market moderate over the next couple months before starting to reduce rates," said Matthew Weller, head of research at Forex.com.

Friday sees the latest US non-farm payrolls, which might confirm recent data showing that the labour market remains healthy but appears to be softening.

"Another blowout jobs number tomorrow like the approximately 350,000 in January might raise concerns about the Fed's ability to tame a hot labor market, which can fuel inflation," said Joe Mazzola, an analyst at Charles Schwab. "A couple of relatively light data points so far this week doesn't change the underlying picture all that much."

The Paris stock market's CAC 40 index broke through 8,000 for the first time ever, closing at 8,012.51. Frankfurt's DAX index also closed at a record high.

In New York, chipmaker Nvidia continued to boost the market, up another 3.5 percent in midday trading in New York. Meanwhile, fellow tech company Apple has been on a month-long slide, falling about 10 percent over the period.

Gold, a haven investment during times of geopolitical uncertainty, surged to a new all-time peak at $2,164.78 per ounce to extend its record-breaking run. It was last at $2,156.96 an ounce.

Talk of lower interest rates has undermined the dollar this week, and a weaker US currency makes dollar-denominated commodities cheaper for buyers using stronger units, which tends to boost demand.

- Key figures around 1645 GMT -

New York - Dow: UP 0.6 percent at 38,876.78 points

New York - S&P 500: UP 0.6 percent at 5,136.68

New York - Nasdaq Composite: UP 0.9 percent at 16,177.58

London - FTSE 100: UP 0.2 percent at 7,695.30 (close)

Paris - CAC 40: UP 0.7 percent at 8,012.50 (close)

Frankfurt - DAX: UP 0.5 at 17,802.76 (close)

EURO STOXX 50: UP 0.9 percent at 4,959.09 (close)

Tokyo - Nikkei 225: DOWN 1.2 percent at 39,598.71 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 16,229.78 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,027.40 (close)

Euro/dollar: UP at $1.090 from $1.0899 on Wednesday

Dollar/yen: DOWN at 147.89 yen from 149.44 yen

Pound/dollar: UP at $1.2758 from $1.2732

Euro/pound: DOWN at 85.44 pence from 85.58 pence

Brent North Sea Crude: DOWN 0.1 percent at $82.90 per barrel

West Texas Intermediate: DOWN 0.4 percent at $78.81 per barrel

burs-gv/cw

(U.Gruber--BBZ)