Market Information Thursday 19 September 2024

The Federal Reserve cut its benchmark interest rate by half a percentage point. The decision leaves the federal funds rate between 4.75% and 5%, with further reductions anticipated. This move aims to sustain the economy and labor market strength while addressing inflation concerns.

UK inflation held steady at 2.2% in August, as reported by the Office for National Statistics, in line with expectations and leaving the possibility open for the Bank of England (BoE) to cut interest rates later in the year. Economists anticipate that the BoE’s Monetary Policy Committee will likely leave rates unchanged in their upcoming meeting but predict rate cuts in November. Despite steady overall inflation, services inflation rose slightly, and wage growth eased, indicating ongoing economic struggles.

India has overtaken China in the MSCI All-Country World index, now holding a 2.33% share versus China’s 2.06%, due to strong economic growth and increased domestic investments. Indian markets have hit record highs with significant IPO activity, while China’s weighting has declined amid economic slowdown. Despite high valuations, investment flows into India are expected to continue.

The 6M Euribor decreased with 4 basis points to 3.27% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.40% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.