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Market optimism about a possible interest rate cut in the United States rose again, with the release of the Consumer Price Index.
Investors are optimistic about the possibility of cuts in Interest from the Fed, which is boosting the market. The expectation is that the Federal Reserve will opt for monetary easing if inflation is below expectations. Today, data from the Consumer Price Index (CPI) comes out and these numbers can help investors get an idea of the next steps for the Fed. If inflation surprises negatively, the American central bank can prepare to start the its monetary easing.
In the CME FedWatch Tool, bets for a cut Interest in March they rose from 64,7% to 67,1%. With investors' expectations focused on possible monetary easing, the international market is also operating positively. European and Asian stock markets show gains, reflecting investor confidence regarding the next steps of the Fed and the possibility of cuts in the Interest from United States.
Market optimism boosts international stock exchanges
The market has shown optimism about the possibility of Fed interest rate cuts and monetary easing, resulting in judicial recovery of international stock exchanges this Thursday morning. The Consumer Price Index presented inflation below expectations, which fuels expectations of monetary easing by the fed.
Impact of interest rate cuts on commodities
The interest rate cut announced by the fed has a direct impact on commodities, such as iron ore and oil/Brent. The market awaits the reaction of these sectors to changes in interest rates.
Variation in interest rates moves the financial market
The variation in interest rates resulting from monetary easing has generated significant movements in the financial market, with a positive impact on international stock markets and an expectation of economic recovery.
Economic momentum driven by interest rate cuts
The economic moment favors a positive stance in the face of interest rate cuts and monetary easing, reflected in increased market optimism and the recovery of international stock markets. The broad consumer price index has also been influenced by this more favorable financial scenario.
Source: moneytimes
