Fed doves, AI news fuels global optimism

Show notes

Markets are buzzing after fresh US data paved the way for next week’s Federal Reserve (Fed) cut. CPI was broadly in line, but soaring jobless claims – the highest in four years – kept the weakening labour market in the spotlight. The Fed is almost certain to deliver a 25bp cut, with odds of larger move fading, however, as inflation pressures in food and energy still linger. Equities cheered the prospect of easier policy, sending the S&P 500 to new highs, the US dollar index remained offered into the 50-DMA.
Across the Atlantic, the European Central Bank (ECB) held rates steady, signaling that the easing cycle may be over for now. Meanwhile, China joined AI headlines: Alibaba surged on plans to pour billions into AI data centers, while SMIC and SK Hynix rallied on chip optimism. Gold shines on dovish bets, crude oil slips despite tensions in Ukraine, and currencies wrestle with diverging Fed and ECB outlooks.
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