Daily Report

19 de Dezembro de 2024
Financial Markets | daily report 19.12.2024
  • The Federal Reserve lowered interest rates by 25bp to 4.25-4.50% and signaled it will slow down the pace of cuts given its upward revision to the inflation forecast for the next two years. The Fed considered that the good health of the labor market and the little progress made on inflation in the recent months gives it room to act more cautiously from now on.
  • Following the announcement, financial markets lowered their interest rate cut expectations in 2025 from two 25bp cuts, to just one. Treasury yields rose +10bp across the curve and US stock markets closed the session -3% lower. The US dollar strengthened against its main counterparts, trading around 1.03 against the euro.
  • Euro area markets had a much quieter session as they awaited the Fed's decision after the European close. Sovereign bond yields edged higher and equity markets mostly posted mild gains.
  • This morning, in a widely expected decision, the Bank of Japan held interest rates steady at 0.25%.