Global Markets Experience "Black Friday" as Hawkish Fed Comments Dampen Rate Cut Hopes
BlockBeats News, November 14th, a hawkish signal from a Federal Reserve official extinguished market hopes for a December rate cut in the United States. Coupled with a still chaotic data calendar and concerns about an artificial intelligence bubble, global stock markets and the precious metals market suffered a heavy blow on Friday.
Blue-chip stock markets from Tokyo to Paris and London all fell sharply, with new concerns about the upcoming budget in the UK exacerbating the pain in the British market. U.S. stock index futures indicate a muted opening on Wall Street, following a sharp decline on Thursday.
Jeremy Stretch, Head of Foreign Exchange Strategy at CIBC Markets, said, "Our expectation of a rate cut in December is now back to 50/50, and this, coupled with concerns about an artificial intelligence bubble, has disrupted market sentiment stability, making this month's market sentiment volatile."
Meanwhile, the White House shattered market hopes for a clearer picture of the U.S. economic situation in the near term, stating that October's U.S. jobless data may never be obtainable, further reinforcing the view that the Federal Reserve may pause its actions until more definitive information is available. (FXStreet)
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