16.12.24 - All eyes on the Fed release

Investors eye on the release of the US Federal reserve (Fed) policy decision on coming Wednesday evening. A interest rate cut of 0.25% is widely anticipated.

Markets: Investors and markets are rather calm and in awaiting stance. Asian and European equity markets are trading sideways in negative territory while US futures, mainly tech, are gaining ground by optimistic investors. Same picture on the currency front and for interest rates, trading sideways in a narrow stance.

My view: A rate cut by the Fed is already priced in. The primary focus will be on policymakers' outlook for next year depending on the economic growth and persistent inflation. Currently, the market prices in a moderate interest cut cycle for 2025. Any disappointment in the communication on the pace of rate cuts could lead to a profit taking stance in elevated US equity markets, especially in tech stocks. USD, gold and silver would also be affected while US interest rates would decline. Global markets may then be dragged down as well.

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17.12.24 - All-in - record low cash levels reported

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12.12.24 - Rate cut cycle continues