On Friday, the 19th of July 2019, a basket of European shares had wrapped up the day in an affirmative territory, following the leads of yesterday’s (July 18th) Wall St. gain, after a Federal Reserve Official had paved the way for an aggressive rate cut policy for US Central Bank as early as this month, while the Belgian Anheuser-Busch InBev had been leading the gains across the boards following sell-off of its Australian operation aimed at slashing its debt-laden and stagnant Asian operations.
Nonetheless, the Chairman of New York Federal Reserve, John Williams said yesterday (July 18th) that the policymakers could not wait for a wave of economic disasters making landfalls before adding stimulatory measures, reigniting hopes for a deeper interest rate cut, which had also helped Wall St.
to close higher on yesterday’s (July 18th) market. In point of fact, following New York Fed Chair’s comment, financial markets across the globe alongside economists and analysts had been betting on at least a 25-point basis rate cut following July’s FOMC minutes scheduled to be taken place by July 30th-31st.
Quoting statistics, following receiving another signal of a Fed rate cut, hopes of which had been dimming slightly over the recent weeks after release of a bunch of strong US economic data, the regional Pan-European benchmark STOXX 600 rose 0.7 percent on Friday’s (July 19th) market closure after hitting a three-week low yesterday (July 18th), while addressing uncertainty over the size of US Central Bank’s interest rate cut, a Spreadex analyst, Connor Campbell said, “The question is not that will a rate cut happen, but will the size of the cut itself will be 0.50 bps instead of 0.25 bps, because there is uncertainty over the size of what the interest rate cut will be at the upcoming Fed meeting.
Markets haven’t had a great week so any sign of extra dovishness will be taken as a positive”. Aside from that, London’s FTSE 100 had wrapped up the day 0.08 percent higher to 7,499.23 and Germany’s trade-sensitive DAX managed to end up in the greens despite no solid progress on Sino-US trade spat alongside a gloomier-than-expected earnings’ season, ended the day up by 0.03 percent to 12,232.11, while French CAC 40 had winded up the day down by 0.23 percent to 5,537.81.