Global stock index dips, dollar climbs as Fed’s Powell holds off on Sept rate cut verdict

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The World York/ London (Reuters/ London (Reuters) -while the US dollar extended the gains after the Federal Reserve Chairman reduced the investor’s hopes for reducing the interest rate in September, saying it was too early to make a decision and copper prices have receded on the huge American tariff advertisements.

The Federal Reserve left interest rates unchanged at the end of its two -day policy meeting, and pointed to moderate economic growth, and the central bank was given little signal for how long the borrowing costs may be reduced. The decision to keep the fixed rates has attracted opponents from two US Central Bank rulers, both appointed to US President Donald Trump, who was constantly abandoning Powell because of the lack of price cuts.

The stock market reaction to the Federal Reserve statement was. But the shares lost the land sharply, as Powell said during a press conference that the Federal Reserve will decide the reduction rates after examining the economic information in the period before its next gathering, in September.

“The markets wanted to hear that the price cuts were implemented in September, but they did not receive any indication of this from Powell. The president raped the FBI’s guidelines a little forward through his statements about where the interest rates should be short -term. Powell simply reminded the markets that it runs Jamie Cox, and it does not manage Jamie Cox.

In Wall Street, the Dow Jones industrial rate decreased 171.71 points, or 0.38 %, to 44,461.28, the S&P index decreased 700 7.96 points, or 0.12 %, to 6362.90 and the boat nasdaq rose 31.38 points, or 0.15 %, to 21,129.67.

The MSCI scale has decreased all over the world 2.65 points, or 0.28 %, to 933.15.

“As we expected, September plays, but Powell retracts the possibility of September reduction,” said Tony Welsh, chief investment in Signaurefd, adding that the Federal Reserve has inflation and employment reports to review it before the meeting. “If inflation data is moderate and reduced growth, then we expect a reduction. If the conditions are identical today – slower but positive growth and continuous inflation, it is unlikely to be a rate reduction.”

In currencies, the dollar is more likely as Powell spoke. The dollar index, which measures greenery against a basket of currencies, including yen and euros, increased by 1.01 % to 99.89.

The euro decreased by 1.13 % at $ 1.1416, while the pound sterling 0.78 % weakened to $ 1.3244 and the Canadian dollar and the Canadian dollar 0.52 % against Greenback to $ 1.38 per dollar.

Against the Japanese yen, the dollar strengthens 0.67 % to 149.43 and against the Swiss franc, the US currency strengthened 0.98 % to 0.814.

In the government bond market, the US Treasury’s revenues added to the gains due to uncertainty in Powell about the reduction in the next meeting of the Federal Reserve in September.

The return on US USA’s notes increased for 10 years by 3.8 basis points to 4.366 %, from 4.328 % late on Tuesday, while bond returns increased for 30 years 2.7 basis points to 4.8949 %. The return on notes increased for two years, which usually moves with interest rate expectations for the Federal Reserve, 5.9 basis points to 3.935 %.

Oil prices have ended their sitting with more than 1 %, as investors are waiting for developments on Trump’s deadline for Russia to end the war in Ukraine and his introductory threats for countries that circulate oil.

US crude futures stabilized by 1.14 %, or 79 cents at $ 70 a barrel and Brent closed at $ 73.24 a barrel, an increase of 1.01 % or 73 cents a day.

Meanwhile, on the commercial front, Trump was a busy day, as it signed a 50 % tariff on some copper products from August 1, causing Comex Copper Futures HGC2 a decrease in 19.5 %. This is soon not ignored, in addition to the global standard in London, which has grown in recent weeks, as American copper mines assumed will witness financial benefit from the customs tariff.

It also signed a 50 % tariffs for US imports of Brazil. Earlier, a 25 % tariff for American imports from India also started on August 1. This was after concluding talks between the United States and China on Tuesday without any major breakthroughs.

Elsewhere in the goods, gold prices added to the losses after the Federal Reserve Average and Powell’s comments. The precious metal was already lower after the solid American economic data.

Gold fell 1.58 % to $ 3,273.59 an ounce.

The publications showed earlier in the day that economic growth has recovered more than expected in the second quarter, but that is largely exaggerated in the health of the economy, as the decline in imports represented the largest part of the improvement and domestic demand for its dissolution in 2-1/2 years increased.

On the work side, private salary statements in the United States have increased more than expected in July, according to the ADP national recruitment report. The salary statements increased by 104,000 jobs last month after a decrease in 23,000 in June. Reuters economists expected that the employment has an increase of 75,000 after a decrease was reported by 33,000 in June.

(Sinad Caro, Samuel Indic, Gregor Stewart Hunter: Edited by Muralikumar Anantharaman, Sam Holmes, Chizu Nomiyama and Marguerita Choy)

2025-07-30 02:39:00

0 4 minutes read