World Market News of the 9 January with FXOpen
FED'S BOWMAN AND BOSTIC CAUTION AGAINST RATE CUTS TOO SOON
Two Federal Reserve officials said Monday they believe that holding interest rates at current levels for some time could bring inflation back down to the central bank’s target, pouring cold water on Wall Street expectations that cuts could begin in the first quarter.
One of these officials, Fed Governor Michelle Bowman, kept the prospect of interest rate hikes on the table should progress on inflation stall. But she moderated a view expressed in November that the Fed would have to raise rates further to get inflation down to the central bank’s 2% target.
Source: Yahoo Finance
MARKETS GET A TECH BOOST
Wall Street’s main indexes kicked off the week with gains, boosted by tech shares. The S&P 500 closed 1.41% higher, while the tech-heavy Nasdaq Composite jumped 2.2%. The Nasdaq clocked its best day since Nov. 14. The Dow Jones Industrial Average added 0.58% by close. Tech shares, along with retail lifted Europe’s Stoxx 600 index which closed 0.34% higher.
Source: CNBC
TOP GOLDMAN SACHS ANALYST SAYS THE WORLD IS MOVING INTO A NEW SUPER CYCLE
The world economy is moving into a “different” super cycle, Peter Oppenheimer, head of macro research in Europe at Goldman Sachs, told “Squawk Box Europe.”
Artificial intelligence and decarbonization are two of the key factors that could have a positive impact during this new cycle, he said. Oppenheimer also pointed out that there are historical parallels to current developments that could hold lessons for the future.
Super cycles are commonly defined as lengthy periods of economic expansion, often accompanied by growing GDP, strong demand for goods leading to higher prices, and high levels of employment.
Source: CNBC