US stocks advanced on Friday as investors began to price in shorter odds of a half-point interest rate cut by the Federal Reserve at its policy meeting next week, fuelling risk appetite across the world.
All three major US indexes closed higher. The Dow Jones Industrial Average was up 0.72 per cent, the S&P 500 jumped 0.54 per cent and the Nasdaq Composite surged 0.65 per cent.
The S&P 500 index is 1 per cent short of its July record high despite weeks of market swings.
Economically sensitive shares outperformed the group of tech megacaps that have led the bull market, with the Russell 2000 index of smaller firms climbing 2.5 per cent.
MSCI’s gauge of stocks across the world rose 0.61 per cent.
After fluctuating sharply throughout the week, Fed funds futures on Friday showed traders pricing an almost equal chance of a 25-basis point cut and a 50-basis point reduction, according to CME Fedwatch.
“More optimistic investors had been hoping for a larger cut and were, therefore, disappointed by the Consumer Price Index reading,” said Richard Hunter, head of markets at Interactive Investor.
“Even so, the Fed continues to walk a tightrope between the labour market and inflation, and is arguably now under less pressure to ease monetary policy aggressively, with several smaller reductions more likely over the next few calendar months depending on subsequent data.”
The Fed has held its benchmark rate steady since July 2023.
The growing anticipation of steeper cuts helped to boost gold and Treasury prices and drive down the dollar.
Tepid inflation and other economic data earlier in the week suggest the Fed may be willing to start slowly as it cuts rates for the first time since 2020.
In Asia, stocks in mainland China and Japan both closed lower, with the Shanghai Composite index down 0.48 per cent and the Nikkei down 0.68 per cent, although it was still positive on the week.
Investors preparing for Fed rate cuts continued to drive down the dollar, which dropped as much as 1 per cent to 140.36 yen, its weakest since December 28. It was last down 0.68 per cent at 140.83.
The dollar index, which measures the currency against the yen and five other major rivals, dropped to a one-week trough at 101.00. It last stood down 0.05 per cent at 101.11.
Aggressive rate cut bets have helped fuel a Treasury rally, with the 10-year yield down some 80 basis points since the start of July to around 3.65 per cent, near its lowest level since June 2023.
Yields on two-year bonds, which closely track interest rate expectations, dropped 5.9 basis points to 3.58 per cent.
Gold headed for its strongest weekly gain since mid-August, up 0.9 per cent to $2,581.70 an ounce, driven by dollar weakness and the looming rate cuts.
With reporting from Reuters and Bloomberg
Jiu-jitsu calendar of events for 2017-2018:
August 5:
Round-1 of the President’s Cup in Al Ain.
August 11-13:
Asian Championship in Vietnam.
September 8-9:
Ajman International.
September 16-17
Asian Indoor and Martial Arts Games, Ashgabat.
September 22-24:
IJJF Balkan Junior Open, Montenegro.
September 23-24:
Grand Slam Los Angeles.
September 29:
Round-1 Mother of The Nation Cup.
October 13-14:
Al Ain U18 International.
September 20-21:
Al Ain International.
November 3:
Round-2 Mother of The National Cup.
November 4:
Round-2 President’s Cup.
November 10-12:
Grand Slam Rio de Janeiro.
November 24-26:
World Championship, Columbia.
November 30:
World Beach Championship, Columbia.
December 8-9:
Dubai International.
December 23:
Round-3 President’s Cup, Sharjah.
January 12-13:
Grand Slam Abu Dhabi.
January 26-27:
Fujairah International.
February 3:
Round-4 President’s Cup, Al Dhafra.
February 16-17:
Ras Al Khaimah International.
February 23-24:
The Challenge Championship.
March 10-11:
Grand Slam London.
March 16:
Final Round – Mother of The Nation.
March 17:
Final Round – President’s Cup.
MORE ON TURKEY'S SYRIA OFFENCE
The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
More from Rashmee Roshan Lall
The biog
Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
Killing of Qassem Suleimani
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Veil (Object Lessons)
Rafia Zakaria
Bloomsbury Academic
Poacher
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
The 10 Questions
- Is there a God?
- How did it all begin?
- What is inside a black hole?
- Can we predict the future?
- Is time travel possible?
- Will we survive on Earth?
- Is there other intelligent life in the universe?
- Should we colonise space?
- Will artificial intelligence outsmart us?
- How do we shape the future?
Klopp at the Kop
Matches 68; Wins 35; Draws 19; Losses 14; Goals For 133; Goals Against 82
- Eighth place in Premier League in 2015/16
- Runners-up in Europa League in 2016
- Runners-up in League Cup in 2016
- Fourth place in Premier League in 2016/17
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
UAE WARRIORS RESULTS
Featherweight
Azouz Anwar (EGY) beat Marcelo Pontes (BRA)
TKO round 2
Catchweight 90kg
Moustafa Rashid Nada (KSA) beat Imad Al Howayeck (LEB)
Split points decision
Welterweight
Gimbat Ismailov (RUS) beat Mohammed Al Khatib (JOR)
TKO round 1
Flyweight (women)
Lucie Bertaud (FRA) beat Kelig Pinson (BEL)
Unanimous points decision
Lightweight
Alexandru Chitoran (ROU) beat Regelo Enumerables Jr (PHI)
TKO round 1
Catchweight 100kg
Marc Vleiger (NED) beat Mohamed Ali (EGY)
Rear neck choke round 1
Featherweight
James Bishop (NZ) beat Mark Valerio (PHI)
TKO round 2
Welterweight
Abdelghani Saber (EGY) beat Gerson Carvalho (BRA)
TKO round 1
Middleweight
Bakhtiyar Abbasov (AZE) beat Igor Litoshik (BLR)
Unanimous points decision
Bantamweight
Fabio Mello (BRA) beat Mark Alcoba (PHI)
Unanimous points decision
Welterweight
Ahmed Labban (LEB) v Magomedsultan Magomedsultanov (RUS)
TKO round 1
Bantamweight
Trent Girdham (AUS) beat Jayson Margallo (PHI)
TKO round 3
Lightweight
Usman Nurmagomedov (RUS) beat Roman Golovinov (UKR)
TKO round 1
Middleweight
Tarek Suleiman (SYR) beat Steve Kennedy (AUS)
Submission round 2
Lightweight
Dan Moret (USA) v Anton Kuivanen (FIN)
TKO round 2
