NEW YORK (REUTERS) - Wall Street's three major indexes rallied on Tuesday (June 4) to clock their biggest one-day gains in five months after Federal Reserve Chair Jerome Powell left the door open for a possible rate cut. Powell said the central bank would act "as appropriate" to address trade war risks a day after St Louis Fed chief James Bullard said a rate cut may be warranted soon. Powell said the Fed was "closely monitoring the implications" of a trade dispute that has disrupted global markets. The last time the benchmark S&P index showed a bigger daily percentage gain was on Jan 4, when Powell turned more dovish after a late 2018 sell-off, with a promise that the Fed would be patient and flexible in its interest rate path. Investors have been betting the Fed would cut rates at least once by the end of 2019, according to CME Group's Fedwatch, and Tuesday's comments helped to back up these bets. "Given the fact there's more than a 95 per cent probability of a rate cut baked into … [Read more...] about Wall Street soars on US rate cut hopes
When will bank interest rates rise
WASHINGTON: The World Bank slashed its global growth forecasts for this year in a report released on Tuesday (Jun 4) that portrayed a world gripped by deepening trade conflict, tumbling confidence and increasingly skittish investment.Although the global development lender currently expects a modest recovery 2020 and 2021, the bank said in its semi-annual report that a lot will have to go right for this to happen.Instead the growing risks suggest the outlook could instead grow darker still.The greatest danger on the horizon is the prospect of worsening trade clashes between major world economies - a spectre that rose again last week when US President Donald Trump announced fresh punitive duties on Mexican goods in a dispute over immigration policy.The world economy is now expected to expand by 2.6 per cent this year, three tenths of a percentage point lower than the January forecast, and well below the three percent growth seen in 2018, according to the Global Economic … [Read more...] about World Bank slashes 2019 growth as global trade slackens
Business Wall Street was set to open higher on Tuesday, bouncing back from a selloff in technology stocks a day earlier, after a senior Federal Reserve official pointed the way to a cut in interest rates in response to slowing economic growth. 04 Jun 2019 09:21PM Bookmark REUTERS: Wall Street was set to open higher on Tuesday, bouncing back from a selloff in technology stocks a day earlier, after a senior Federal Reserve official pointed the way to a cut in interest rates in response to slowing economic growth.St. Louis Fed President James Bullard said late on Monday that a rate cut "may be warranted soon", driving Fed funds futures to price in a 67per cent chance the central bank would reduce key short-term borrowing costs at its July policy meeting.That would provide a fillip to Wall Street, whose three main indexes have shed at least 6per cent in May following a sudden flare up in trade tensions and Washington's threat to slap tariffs on Mexican goods."There is a positive … [Read more...] about Wall St. set to open higher after Bullard boosts rate cut hopes
Major Philippine banks are still hoping that a cut in reserve requirement ratios, currently at 18 percent, will be decided keeping with the current condition of local and global financial markets. In March and June last year, the Bangko Sentral ng Pilipinas (BSP) allowed banks to bring down reserve ratios twice, from 20 percent to the current 18 percent by 100 basis points each, to free up about P200 billion for increased lending and bank investments. It was supposed to start a gradual easing in recognition of a slowdown in the entry of foreign investment funds to the country and the recovery of the US market and other major world economies. However, an escalation of inflation resulting from manipulated rice and food shortages in the local economy, with commodity prices rising by an average of 4.3 percent in the first half of 2018, led the BSP to temporarily hold back further reserve ratio reductions. Instead, the BSP continued with increasing its interest rates throughout the year in … [Read more...] about Time to bring down bank reserve ratios?
SHANGHAI -- Asian stock markets edged up on Monday after surprising strong US first-quarter economic growth boosted the S&P 500 index to a record high, but gains were capped by caution over less upbeat aspects in the GDP report which pointed to some weakening ahead. Investors were also awaiting a meeting of the US Federal Reserve this week and Chinese factory data for further clues on policy direction in the world's biggest economies. MSCI's broadest index of Asia-Pacific shares outside Japan was up less than 0.1 percent, edging higher after posting its biggest weekly drop in more than a month last week. Australian shares were down 0.26 percent, while Seoul's KOSPI was up 0.4 percent. Japan's financial markets are closed for a long national holiday this week, but Nikkei 225 futures in Singapore were 0.72 percent higher. In contrast with weakness in Asian markets last week, Wall Street ended Friday on a high note following data showing US gross domestic product grew at a faster 3.2 … [Read more...] about News Asian shares rise on strong US GDP, eyes on Fed, China