Asian stocks rally on Fed rate cut bet; euro range-bound

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Asian stocks rally on Fed rate cut bet; euro range-bound

On Thursday, the 4th of July 2019, a majority of Asian stocks had been echoing the leads of Wall St.’s yesterday’s (July 3rd) gain which had witnessed a record closure of all three key indexes of Wall St., as a bunch of much-softer than expected economic data had been bolstering a shimmering hope of rate cut, although major fed policymakers including Chair Powell had voiced against a rate cut in July last week.

While this report was being prepared, at the late-midday Asian trading hours, MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.4 percent, while Japan’s Nikkei 225 alongside Australian’s ASX 200 had been up by 0.3 and 0.6 percent respectively, following a rate cut of Reserve Bank of Australia earlier this week.

Nonetheless, a public holiday in United States on its Independence Day celebrations kept trading activity submissive all over the world. Emphasizing on growing investors’ bet on a fed rate cut as early as in July, head of fixed income at Simplex Asset Management in Tokyo, Noriko Miyoshi said, “Stocks and bonds rallied together as the markets were betting on interest rate cuts at the European Central Bank and the U.S.

Federal Reserve. The pace looks too fast. Investors across the world rushed to take part in the game of yield hunting,” while in the foreign exchange market, euro remains a closer to its two-weeks low at 1.1268 breached yesterday, and the British currency was at $1.2584, closer to its two-week low, as UK economic data had contributed to traders’ belief that BoE would soon sign up at the league of dovish central banks across the world.