1. Dow Jones Index Surges on Strong Economic Data
The Dow Jones New York Stock Exchange Index closed with a remarkable gain of over 300 points on Thursday. This surge was precipitated by the release of stronger-than-expected economic data in the United States, effectively alleviating investors’ concerns regarding a looming economic recession. Furthermore, the anticipation is that the U.S. Federal Reserve (Fed) is unlikely to raise interest rates at its upcoming meeting.
2. Asian Markets Start Positively Amidst Key Economic Data Release in China
Asian stock markets initiated the day on a positive note, aligning with the upward trajectory of the Dow Jones on Thursday, September 14. Investors are keeping a keen watch on the imminent release of vital economic data from China, which is expected to provide insights into the direction of the country’s economy.
3. Arm Holdings Achieves Strong Debut on Nasdaq
Shares of Arm Holdings, a chip design company owned by SoftBank Group, enjoyed a robust debut on the Nasdaq, surging by nearly 25% on their first day of trading. This surge has propelled the company’s market value to nearly $60 billion. Arm Holdings is globally renowned for its production of smartphone chips, including the design of chips utilized in data center servers, consumer devices, and various industrial applications.
4. ECB Implements Expected 0.25% Interest Rate Hike
In line with market expectations, the European Central Bank (ECB) has announced a 0.25% increase in interest rates during its recent meeting. This marks the 10th consecutive interest rate hike undertaken by the ECB, underlining the central bank’s commitment to addressing inflationary pressures.
5. Fed Expected to Maintain Interest Rates
Investor sentiment is heavily leaning towards the anticipation that the U.S. Federal Reserve (Fed) will maintain its current interest rates during its upcoming meeting. This sentiment has strengthened following the release of inflation figures on Thursday. The CME Group’s FedWatch Tool indicates a 97.0% likelihood that the Fed will keep interest rates within the 5.25-5.50% range on September 19-20, with only a 3.0% probability of a 0.25% interest rate increase to 5.50-5.75%.
6. China’s PBOC Initiates RRR Cut for Increased Lending and Fiscal Stimulus
Duncan Wrigley, Chief Economist at Pantheon Macroeconomics, predicts that the People’s Bank of China’s (PBOC) decision to reduce commercial banks’ reserve requirement ratio (RRR) by 0.25%, effective September 15, marks the second such reduction this year. This move is expected to enhance the lending capacity of commercial banks and facilitate fiscal stimulation, particularly through the issuance of local government bonds.
7. Economic Data on the Horizon
In today’s economic calendar, the Federal Reserve Bank of New York is set to report the Empire State Manufacturing Index for September. Simultaneously, the U.S. government will release import and export prices for August. Later in the day, industrial production figures for August will be made available at 8:15 p.m., followed by the September preliminary consumer confidence index from the University of Michigan at 9:00 p.m. These data releases will be closely monitored for their potential impact on financial markets and economic outlooks.