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Market Mood

The Federal Open Market Committee (FOMC) has reduced interest rates, aligning with other major central banks moving towards more accommodative monetary policies. This decision stems from concerns about economic vulnerability despite manageable inflation levels. In August, Purchasing Managers' Index (PMI) data showed growth in the US, Eurozone, UK, and Japan, primarily driven by strong service sectors, though manufacturing sectors showed signs of decline. Upcoming flash PMIs will provide further insight into economic trends, potentially influencing future rate cuts. Additionally, softer inflation readings, including a 0.3% increase in core PCE in the US and a steady 2.8% Eurozone core inflation rate, support expectations of further rate cuts later this year.

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