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
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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 MarketPaul Donovan from UBS, notes that a unanimous 92 out of 92 surveyed economists expect no change in US interest rates today. He discusses the potential need for an insurance rate cut to maintain consumer spending and the implications of President Trump’s comments on the US Dollar. Donovan highlights that bonds are more vulnerable to dollar weakness than inflation.
Fed Day insights on US Dollar
“An insurance rate cut may be necessary, to keep fear of unemployment low and allow US consumers to continue cutting savings rates to pay for tariffs. An insurance cut is not urgent, however.”
“If the Fed took Trump’s social media posts seriously, there would be some uncertainty about inflation from future potential tariffs. It seems unlikely the Fed will focus on this, however.”
“Trump’s comments suggesting support for the US dollar’s slide have limited inflation implications. Companies price to market—few chief executives change pricing strategy just because a foreign exchange dealer presses a button.”
