Stock markets on both sides of the Atlantic registered a second straight week of gains (August 19-23) thanks to positive economic data, interim reports from companies and increased expectations of interest rate cuts by the European Central Bank (ECB) and the US Federal Reserve (Fed ). The Bulgarian stock exchange matched the trend, with indices in Sofia rising between 0.09% and 1.17%.
The minutes of the latest meetings of the ECB and the Fed, published on Thursday, raised investors’ hopes for an upcoming rate cut. Board members at both banks have indicated that a cut is “likely” in September, provided inflation continues to slow.
On Friday, Fed Chairman Jerome Powell said it was time for the first rate cut in five years, but gave no specific date. Powell stressed that the timing and pace of rate cuts will depend on economic data and risks. Investors expect the Fed to cut rates to 3.00%-3.25% by the end of 2025, well below the current range of 5.25%-5.50%.
At its next meeting in September, the Fed will provide updated economic forecasts, and the same is expected from the ECB.
#big #day #stock #markets #interest #rates #falling #continents
