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19/08/24
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Global Shares Extend Gains
On Monday, Wall Street moved higher as the dollar dipped lower after stocks surged last week on anticipation that the U.S. economy would avoid a recession and easing inflation would lead to an interest rate cut cycle.
The Nasdaq Composite gained 0.34% to 17,691.80, the S&P 500 gained 0.4%, to 5,576.22 and the Dow Jones Industrial Average rose 0.46% to 40,846.81.
MSCI’s widest index of global stocks had inched up about 0.6%.
The prospect of decreasing borrowing costs could not sustain gold’s all-time highs, and the dollar dropped versus the euro, while the yen pushed higher.
In the U.S., Federal Reserve members Austan Goolsbee and Mary Daly were out during the weekend to talk about the possibility of easing in Sept., while minutes of the latest policy meeting due this week will likely underscore the dovish outlook.
On Friday, Fed Chair Jerome Powell will speak in Jackson Hole and investors anticipate he will acknowledge the case for a rate cut.
Futures are fully priced for a 0.25% move and imply a 25% probability of a 0.5% cut with much depending on data in the next payrolls report.
Broad European shares pushed up about 0.7%, while the blue-chip FTSE 100 index traded 0.68% higher ahead of the busy week.
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