Some of the top global developments include US markets ending higher overnight after Fed's 50 bps rate cut booster, followed by China and Bank of England opting to keep interest rates unchanged. More in this September 20 World Street edition, dive into it for further details!
Fed's rate cut bolster markets
US markets surged overnight as the S&P 500 rose 1.7 percent, closing above 5,700 for the first time, and the Dow jumped over 500 points to top 42,000. The Nasdaq Composite gained 2.5 percent, marking its fourth-largest rally of 2024. Investor optimism was boosted by lower-than-expected jobless claims and the Fed's half-point rate cut.
Japan inflation meets Street estimates
Japan's core consumer price index rose 2.8 percent year-on-year, matching Street estimates and slightly up from 2.7 percent the previous month. Excluding fresh food and energy, inflation reached 2 percent, up from 1.9 percent. This data precedes the Bank of Japan's upcoming policy meeting, where interest rates are expected to remain at 0.25 percent.
China, BoE keeps rates steady
China held its main benchmark lending rates steady at the monthly fixing, defying expectations. Market analysts had anticipated a rate cut, especially after the Federal Reserve's 50-basis-point reduction, which provided China room to lower borrowing costs without sharply weakening the yuan.
The Bank of England held interest rates steady after its August cut, despite the U.S. Federal Reserve’s large rate reduction the day before. The Monetary Policy Committee voted 8-1, with one member favoring a further 0.25 percent cut.
Brazil's daily fine on 'X'
Elon Musk's platform, X (formerly Twitter), is facing hefty daily fines in Brazil for allegedly circumventing a ban, according to a statement. The court has slapped X with a fine of $5 million Brazilian reals per day, equivalent to roughly $920,000. In addition, the court is holding Starlink—Musk's satellite internet service operated by SpaceX—jointly liable for the ongoing violation.
No ceasefire on the horizon?
Israel launched a full-scale assault on multiple Hezbollah locations in Lebanon, intensifying tensions in the region. The Israel Defense Forces (IDF) initiated the attack shortly after Hezbollah delivered a televised speech condemning recent attacks involving pagers and walkie-talkies. In response, both the US and the UK urged restraint. The US emphasised the need for a diplomatic resolution, calling it both urgent and attainable, while the UK pushed for an "immediate ceasefire" between Israel and Hezbollah to de-escalate the conflict.
Why Nike popped
Nike revealed that Elliott Hill will step in as President and CEO on October 14, 2024, succeeding John Donahoe, who will retire from his role and the Board of Directors the day prior. Following this announcement, Nike's shares surged nearly 8 percent in after-hours trading. Donahoe will remain with the company as an advisor until January 31 to ensure a seamless leadership transition.
(with inputs from Reuters and other agencies)
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