Finance and markets have been buzzing with activity, keeping investors on their toes and eyes glued to the latest updates. Here’s a rundown of what’s been happening:
- Second Cut: The European Central Bank recently made a move by cutting interest rates by 25 basis points, bringing it down to 3.5%. Despite this, the ECB’s Governing Council made it clear that they are not committed to a specific rate path. While the central bank reduced its growth forecast for the euro zone to 0.8% from 0.9%, markets are speculating a 70% chance that the ECB will maintain the rates at its upcoming meeting.
- Markets Regaining Confidence: U.S. technology stocks saw a surge on Thursday, leading to a 1% increase in the Nasdaq Composite. Additionally, the S&P 500 went up by 0.75% and the Dow Jones Industrial Average gained 0.58%. Meanwhile, Europe’s Stoxx 600 index also experienced a rise as the ECB cut interest rates. Shares of Roche fell by 2.16%, whereas Novo Nordisk saw a jump of 2.66%.
- Hotter-Than-Expected Core, Again: The U.S. producer price index rose by 0.2% in August, matching the Dow Jones consensus estimate. Interestingly, the core PPI came in 10 basis points higher than anticipated, raising some eyebrows.
- Oracle Predicts Revenue Explosion: Oracle seems to be on a winning streak with its shares climbing by 2.67% and further increasing by 6.12% during extended trading. The company raised its 2026 revenue forecast to $66 billion and set a staggering $104 billion target for 2029. Oracle’s CEO Safra Catz emphasized the partnerships with Amazon, Google, and Microsoft supporting these bullish predictions.
- Bitcoin Investors Ride the Wave: According to Standard Chartered, Bitcoin prices could soar to $125,000 if Donald Trump wins the U.S. presidential election. Even in the scenario of Kamala Harris securing victory, the bank foresees a rise in Bitcoin prices. Currently trading around $58,000, the cryptocurrency is eying its previous all-time high.
As financial markets look forward to the U.S. Federal Reserve meeting next week, uncertainty looms over the direction of interest rates. While economic indicators present a mixed bag of information, the lingering question remains whether the Fed will opt for a 25 or 50 basis point cut. Traders are equally divided, citing a 57% chance for a 25-point cut and 43% for a 50-point one.
Amidst this backdrop, market sentiments have improved, hinting at a possible upturn. Regardless of the Fed’s decision, a 25 basis point cut could inject some optimism and potentially drive markets out of their current slump. Stay tuned for more updates as the financial world keeps us on the edge of our seats.
