World Street | Powell says on track to cut rates this year, gold shines at new high, Japanese market upbeat, Morgan Stanley cuts Tesla's target

World Street offers sneak peak into global news

In top global news, US Federal Reserve chairman Jerome Powell's reiterates possibility of rate cuts this year but gives no timeline, while Japanese and Australian markets hit record historic highs. Gold, too, continues to scale new peaks amid rate cut bets, Morgan Stanley reduces Tesla's target price amid faltering demand in China, all this and more on March 7 World Street edition, read on:

Powell Tables Rate Cuts In 2024

Federal Reserve Chair Jerome Powell on March 6 reiterated that he expects interest rates to start coming down this year but is not ready yet to say when. In prepared remarks for congressionally mandated appearance at Capitol Hill, Powell said policymakers remain aware of the risks that inflation poses and don’t want to ease up too quickly.

Gold's glittering Rally

Gold reached a historic high on March 7, extending its impressive rally primarily fueled by expectations of US monetary policy easing. Spot gold climbed 0.8 percent to $2,145.49 an ounce, reaching a peak of $2,152.09 during the session. US gold futures closed 0.8 percent higher at $2,158.2.

Japanese markets upbeat

Several Asia-Pacific stock indexes hit record highs on March 7. Japan's Nikkei 225 hit all-time high of 44,472, while broad-based Topix hit a fresh high of 2,755. Australia's S&P/ASX 200 also scaled to new life-time high of 7,767. The rally followed Powell's comments that while the US central bank could start cutting rates, it was “not immediately ready”.

US approves spending bill

The Republican-led US House of Representatives approved a bill to fund many parts of the government until the end of the fiscal year, which started in October. There's a risk of some government offices closing again if a new funding plan isn't agreed upon by March 8. Now, it needs approval from the Senate by March 8 when temporary funding for some agencies runs out.

EV demand faltering

Tesla's stock dropped for the third day in a row on March 6 after Morgan Stanley reduced the expected price of the scrip, saying the demand for electric vehicles (EVs) is still falling in important markets like China, even though Tesla has been reducing prices a lot. Morgan Stanley is not the only one worried about Tesla's future sales. Other analysts are also lowering their expectations for how many cars Tesla will sell, especially after seeing poor sales numbers in China for February.

Ukraine Strikes Russia's Iron Ore Plant

There was a missile warning in the Russian border area of Kursk on March 6. This happened after a warehouse storing fuel and lubricants at a big iron ore plant in Kursk was attacked by drones believed to be from Ukraine. According to reports, two drones hit the fuel facilities at the Mikhailovsky GOK iron ore plant. The plant is one of the biggest in Russia and is owned by Metalloinvest, which is the largest iron ore producer in Russia.

Cancer-linked chemical in acne treatments

Acne products from brands including Proactiv, Target Corp’s Up & Up and Clinique have elevated levels of the carcinogen, an independent testing laboratory said in a petition filed with the US Food and Drug Administration  (US FDA). The lab asked the FDA to recall the affected treatments — all of which contain the active ingredient benzoyl peroxide — while regulators investigate.

(With inputs from Reuters and other agencies)