Federal Reserve Signals Possible Rate Cuts: Market Reactions and Economic Outlook
1 month ago

In a notable trading session on Friday, U.S. benchmark equity indexes experienced upward momentum as investors processed remarks from a key Federal Reserve official. Boston Fed President Susan Collins forecasted that it may soon be appropriate to begin reversing monetary policy adjustments, contingent on forthcoming economic data aligning with her expectations.

Collins articulated her vision for a gradual return to the 2% inflation target while acknowledging the strength of the current labor market. Her comments were shared during an exclusive interview with a local publication, where they were later published with editorial enhancements for clarity. Adding to the market narrative, ING released a report projecting that the Federal Open Market Committee (FOMC) is expected to implement a half-percentage-point cut to interest rates in the upcoming month.

This potential shift comes in the wake of increasing recession warnings from economic analysts. Over the previous year and a half, the FOMC has tightened monetary policy significantly, with a total increase of 525 basis points between March 2022 and July 2023 in an effort to subdue inflation. Recently, however, the central bank has opted for a pause in rate changes, with the latest hold occurring just last month. In the commodities sector, the price of September West Texas Intermediate crude oil saw a modest increase, rising by $0.65 to conclude at $76.84 per barrel.

Meanwhile, October Brent crude, which serves as a global benchmark, was reported at $79.60, up by $0.44. This uptick in oil prices is largely attributed to ongoing geopolitical tensions coupled with renewed indications of strong demand emerging from China, following an unexpected surge in inflation figures earlier in July. On the corporate front, shares of Akamai Technologies ($AKAM) surged by 11% following the company's announcement of Q2 financial results, which exceeded Wall Street's expectations.

Furthermore, Akamai also provided a raised earnings outlook for the full year, instilling optimism among investors. Conversely, Insulet ($PODD) faced a downturn, with shares declining by 9.5%. This negative trajectory followed the company’s report of adjusted earnings for Q2 that fell short of analyst predictions, raising questions about its performance in the competitive medical technology landscape. The financial landscape remains dynamic, with investors closely monitoring both macroeconomic indicators and company-specific developments.

As the Fed navigates the complexities of inflation and economic stability, market participants will remain vigilant in adapting their strategies amidst an evolving financial environment..

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Economic Calendar

NAB Business Confidence
2024-09-10 03:30:00
Actual
-4
Forecast
Previous
1

A survey of the current state of the business sector in Australia.

NAB Business Conditions
2024-09-10 03:30:00
Actual
3
Forecast
Previous
6

An index measuring sales, hiring and profits at Australian companies.

Claimant Count Rate
2024-09-10 08:00:00
Actual
4.1%
Forecast
4.1%
Previous
4.2%

It estimates the claimant count (the number of people claiming unemployment related benefits) in the UK; the level (thousands) and as a percentage rate.

Industrial Orders y/y
2024-09-10 08:00:00
Actual
-0.1%
Forecast
Previous
1.0%

Data refer to new orders, net of cancellations, received during the month from both the domestic and the export market, for finished goods processed in own factories.

Final Consumer Price Index m/m
2024-09-10 08:00:00
Actual
-0.1%
Forecast
-0.1%
Previous
0.3%

The consumer price index for Germany measures the average price change for all goods and services purchased by households for consumption purposes.

Final Consumer Price Index y/y
2024-09-10 08:00:00
Actual
1.9%
Forecast
1.9%
Previous
2.3%

The consumer price index for Germany measures the average price change for all goods and services purchased by households for consumption purposes.

Final Harmonized Index of Consumer Prices y/y
2024-09-10 08:00:00
Actual
2.0%
Forecast
2.0%
Previous
2.6%

The Harmonized Index of Consumer Prices is used to measure inflation in the context of international, mostly inner-European comparisons.

Final Harmonized Index of Consumer Prices m/m
2024-09-10 08:00:00
Actual
-0.2%
Forecast
-0.2%
Previous
0.5%

The Harmonised Index of Consumer Prices is used to measure inflation in the context of international, mostly inner-European comparisons.

Consumer Price Index y/y
2024-09-10 08:00:00
Actual
2.6%
Forecast
3.5%
Previous
2.8%

The Consumer Price Index (CPI) describes the monthly change in the price of goods and services for an average household in Norway.

Consumer Price Index m/m
2024-09-10 08:00:00
Actual
-0.9%
Forecast
Previous
0.5%

The Consumer Price Index (CPI) describes the monthly change in the price of goods and services for an average household in Norway.

Producer Price Index y/y
2024-09-10 08:00:00
Actual
3.6%
Forecast
8.3%
Previous
6.5%

The Producer Price Index is an important part of a system for short-term indicators made in order to monitor the Norwegian economy.

Industrial Production y/y
2024-09-10 09:00:00
Actual
Forecast
Previous
0.6%

The Industrial Production Index (IPI) is a situational indicator that measures the monthly development of productive activity of industrial branches, excluding construction.

Industrial Production m/m
2024-09-10 10:00:00
Actual
Forecast
Previous
0.5%

Industrial production refers to the volume of output generated by production units classified under the industrial sectors.

Industrial Production y/y
2024-09-10 10:00:00
Actual
Forecast
Previous
-2.6%

Industrial production refers to the volume of output generated by production units classified under the industrial sectors.

Economic Forecasts
2024-09-10 11:00:00
Actual
Forecast
Previous

Directorate General for Economic and Financial Affairs (DG ECFIN) produces economic forecasts on behalf of the European Commission.

NFIB Small Business Index
2024-09-10 12:00:00
Actual
Forecast
93.3
Previous
93.7

National Federation of Independent Business (NFIB) Small Business Optimism Index is a composite of ten seasonally adjusted components based on the answers of the NFIB members to questions related to: plans to increase employment, plans to make capital outlays, plans to increase inventories, expectations for the economy to improve, expectations for real sales to grow, current inventory, current job openings, expected credit conditions, whether it is a good time to expand, and earnings trend.

Redbook Retail Sales
2024-09-10 14:55:00
Actual
Forecast
Previous
6.3%

The LJR Redbook survey tracks 15 retail stores every week to determine the changes in sales.

Trade Balance
2024-09-10 17:41:00
Actual
Forecast
83.90 B US dollars
Previous
84.65 B US dollars

The Trade Balance is the difference between the monetary value of exports and imports in an economy over a certain period of time.

Construction Output m/m
2024-09-11 08:00:00
Actual
Forecast
Previous
0.5%

Construction output is a monthly estimate of the output of the construction industry in both the private and public sectors.

Construction Output y/y
2024-09-11 08:00:00
Actual
Forecast
Previous
-1.7%

Construction output is a monthly estimate of the output of the construction industry in both the private and public sectors.

Industrial Production m/m
2024-09-11 08:00:00
Actual
Forecast
Previous
0.8%

The Industrial Production index measures the volume of production of the manufacturing, mining and quarrying, and energy supply industries, which covered 18.

Industrial Production y/y
2024-09-11 08:00:00
Actual
Forecast
Previous
-1.4%

The Industrial Production index measures the volume of production of the manufacturing, mining and quarrying, and energy supply industries, which covered 18.

Manufacturing Production m/m
2024-09-11 08:00:00
Actual
Forecast
Previous
1.1%

The Index of Manufacturing Production covers the 13 sub-sectors of manufacturing and these are aggregated to form the resulting monthly manufacturing output time series.

Manufacturing Production y/y
2024-09-11 08:00:00
Actual
0.4%
Forecast
0.4%
Previous
-1.5%

The Index of Manufacturing Production covers the 13 sub-sectors of manufacturing and these are aggregated to form the resulting monthly manufacturing output time series.

Visible Trade Balance
2024-09-11 08:00:00
Actual
Forecast
Previous
-18.89 -18.89--18.89 B GBP

It represents the difference between imports and exports of goods.

Trade Balance Non EU
2024-09-11 08:00:00
Actual
Forecast
Previous
-7.46 B GBP

A gauge of Britain's trade with countries outside of Europe.

M2 Money Supply y/y
2024-09-11 10:00:00
Actual
Forecast
Previous
6.3%

Money Supply is the aggregate amount of monetary assets available in a country at a specific time.

New Loans
2024-09-11 10:00:00
Actual
Forecast
Previous
260.0 B Yuan

They represent the value of new yuan-denominated loans issued to consumers and businesses during the previous month.

Eurogroup Meeting
2024-09-11 12:00:00
Actual
Forecast
Previous

The Eurogroup, the main forum for the management of the single currency area, is an informal body that brings together the finance ministers of countries whose currency is the euro.

MBA Mortgage Applications
2024-09-11 13:00:00
Actual
Forecast
Previous
1.6%

The Weekly Mortgage Applications Survey contains 15 indices covering application activity for fixed rate, adjustable rate, conventional and government loans for home purchases and refinances.

Core Consumer Price Index (CPI) m/m
2024-09-11 14:30:00
Actual
Forecast
0.2%
Previous
0.2%

Bureau of Labour Statistics also calculates and publishes indexes for special aggregations, such as energy items, that cut across the above classification scheme.

Core Consumer Price Index (CPI) y/y
2024-09-11 14:30:00
Actual
Forecast
Previous
3.2%

Bureau of Labour Statistics also calculates and publishes indexes for special aggregations, such as energy items, that cut across the above classification scheme.

Consumer Price Index (CPI) y/y
2024-09-11 14:30:00
Actual
Forecast
2.6%
Previous
2.9%

The CPI (Consumer Price Index) provides an estimate of the price change between any two periods.

Consumer Price Index m/m
2024-09-11 14:30:00
Actual
Forecast
0.2%
Previous
0.2%

The CPI is the main UK measure of inflation for macroeconomic purposes and forms the basis for the Government's inflation target.

Crude Oil Inventories
2024-09-11 16:30:00
Actual
Forecast
Previous
418.3 M Barrels

The Weekly Petroleum Status Report (WPSR) provides timely information on supply and prices of crude oil and principal petroleum products in the context of historical data and forecasts.