nomadic_m
09-19 17:14
New Zealand's reaction to the Federal Reserve's 50bps rate cut:

*Positive Reaction*
- Reserve Bank of New Zealand (RBNZ) welcomed the move
- NZX 50 Index rose 0.5%
- Banking and finance stocks gained
- May support the export sector and attract investors to NZ's higher-yielding assets

*Cautious Outlook*
- RBNZ may maintain interest rates at 3.5%
- Potential for future rate cuts in 2024
- Depends on global economic conditions and domestic growth

*Market Impact*
- NZD initially fell, then recovered against USD
- Investors await RBNZ's next move

50 bps! Ready to Embrace Rally or Sell the News?
On September 18, 2024, the Fed cut rates by 50 basis points to 4.75%-5%. This is the first cut since March 2022. The Fed forecasts a total of 100 basis points in cuts for 2024 and another 100 basis points in 2025. The Dow Jones and S&P 500 both hit record highs during the trading session but soon gave back some gains. All three major indices turned negative, with the Dow down 0.25%, the Nasdaq down 0.31%, and the S&P 500 down 0.29%. ---------------- Will 50bps continue to boost market higher or time to sell the fact?
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