Fed encourages trading in Asia and points Europe towards the green
The color green dominated the closing of the session in Asia and trading in Europe points to positive territory, at a time when the market reinforces optimism that a cut in interest rates in the US could be imminent.
In Asia, in China, Shanghai rose 0.14% while Hong Kong fell 0.6%. Investor sentiment was further boosted by the news that Shenzhen joined other major cities in the country in making home buying more flexible, at a time when the Chinese real estate market is under pressure.
In South Korea, Kospi climbed 2.07%. In Japan, after trading was closed this Monday due to the holiday, the Nikkei rose 1.57% and the Topix added 0.65%. MSCI Asia-Pacific posted its longest streak of gains since February.
In Europe, futures on the European benchmark Stoxx 600 rose 0.32%, while derivatives on the DAX added 0.19%.
The president of the North American Federal Reserve (Fed) of Richmond, Thomas Barkin, stated that he expects high interest rates to further cool the US economy and bring inflation to the 2% target.
In turn, his New York counterpart, John Williams, went even further and admitted that, eventually, there could be cuts in the federal funds rate, although the decision depends on all the data on the North American economy.
These statements were made hours before the Australian central bank kept interest rates in restrictive territory (thus not opting for any increase), keeping reference rates at 12-year highs.
