S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- EUR/USD holds steady as the US Dollar tries to stabilize amid rising stagflation concerns.
- Fed’s Bostic noted that the US central bank still faces a long path to reach its 2% inflation goal.
- The ECB is widely anticipated to deliver a 25 basis point interest rate cut on Thursday.
EUR/USD continues to slide for the second consecutive session, trading near 1.1350 during Asian hours on Tuesday. The pair weakens as the US Dollar (USD) attempts to regain stability amid growing concerns over stagflation.
In early hours on Tuesday, Atlanta Fed President Raphael Bostic commented that the Federal Reserve still faces a long journey to bring inflation down to its 2% target. His remarks tempered market expectations for further interest rate cuts in the near term.
In a shift from its earlier outlook, Deutsche Bank now anticipates a 25 basis point rate cut in December—its first forecasted cut for 2025—followed by two additional cuts in the first quarter of 2026. The bank projects a terminal rate between 3.5% and 3.75%.
Market participants are now eyeing the European Central Bank’s (ECB) Bank Lending Survey (BLS), which may offer key insights into the ECB’s assessment of monetary and economic conditions ahead of its policy meeting on Thursday. The European Central Bank (ECB) is set to hold its policy meeting on Thursday, with markets widely anticipating a 25 basis point interest rate cut.
The Euro has also found support amid escalating global trade tensions and uncertainty surrounding US tariff policies, which have reignited fears of a potential recession and undermined investor confidence in US assets.
Investors will closely watch for ECB commentary on the implications of trade tensions for the Eurozone economy and the future trajectory of interest rates.
