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By the end of Thursday, the Dow Jones Index (US30) rose by 0.27%. The S&P500 Index (US500) gained 0.48%. The Nasdaq (US100) technology Index closed higher by 0.94%. All three major Wall Street indices closed at record highs on Thursday. Investors welcomed the Fed’s quarter-point rate cut and the prospect of two additional reductions, interpreting the move as a shift toward supporting growth rather than strictly controlling inflation. Technology stocks led the rally, with Intel shares soaring more than 22% after Nvidia announced a $5 billion investment in a joint chip development, and Nvidia shares gained 3.5%. Economically, initial jobless claims fell sharply to 231,000 from a four-year high, easing some concerns about labor market weakness.

The Mexican peso fell to 18.35 per US dollar, retreating from its strongest level since July 2024 at 18.29. In Mexico, headline inflation in August was 3.57% and core inflation was around 4.23%, which is relatively subdued but still keeps Banxico cautious, limiting aggressive rate cuts. Meanwhile, growth forecasts have softened, industrial production has shown a contraction, and the outlook for private spending has cooled, which reduces demand for peso-denominated assets.

European stock markets were mostly higher on Thursday. The German DAX (DE40) rose by 1.35%, the French CAC 40 (FR 40) closed up 0.87%, the Spanish IBEX35 (ES35) gained 0.32%, and the British FTSE 100 (UK100) closed positively on Thursday at 0.21%. The Bank of England voted 7-2 to keep the Bank Rate unchanged at 4%, with two members voting for a 25-basis-point cut to 3.75%. The MPC also voted 7-2 to slow quantitative tightening, reducing gold holdings by £70 billion over the next year to £488 billion. Policymakers noted progress in disinflation after past shocks, supported by a restrictive policy, although inflation remains above the target. The CPI was 3.8% in August, and is expected to rise slightly in September before returning to the 2% level. Looking ahead, the committee emphasized the need for a gradual, data-driven approach without a predetermined path for rate cuts, maintaining flexibility to respond to future developments.

In September 2025, Norges Bank reduced its key rate by 25 basis points to 4.0%, aligning with market expectations, and indicated that it would continue to lower rates next year if the economy develops as anticipated. This was the second rate cut in the last five years, following a brief pause in August. The bank’s committee noted that the current policy is restrictive, helping to cool the economy and reduce inflation.

US natural gas prices fell by more than 3% to below $2.99/MMBtu after the EIA reported a larger-than-expected increase in storage inventories. In the week leading up to September 12, companies injected 90 billion cubic feet of gas into storage, exceeding forecasts of 81 billion cubic feet, compared to 56 billion cubic feet a year earlier and a five-year average of 74 billion cubic feet.

Asian markets were mostly lower yesterday. The Japanese Nikkei 225 (JP225) rose by 1.15%, the Chinese FTSE China A50 (CHA50) fell by 1.44%, the Hong Kong Hang Seng (HK50) declined by 1.35%, and the Australian ASX 200 (AU200) showed a negative result of 0.83% yesterday.

In September 2025, the Bank of Japan left its key short-term rate unchanged at 0.5%, keeping borrowing costs at their highest level since 2008 and meeting market expectations. The decision, made by a 7-2 vote, came amid uncertainty about Japan’s political outlook and the impact of US tariffs. It followed the US Fed’s rate cut earlier this week: the first since December. During Friday’s meeting, the Bank of Japan announced that it would begin selling its holdings in exchange-traded funds (ETFs) and real estate investment trusts (REITs). The board noted that the Japanese economy has recovered at a moderate pace despite some weaknesses. Private consumption remained robust due to improved employment and income conditions. Inflation expectations rose moderately, with the core CPI projected to increase gradually.

The New Zealand dollar fluctuated around $0.598 on Friday after falling more than 1% in the previous session to a nearly two-week low. The drop was fueled by a sharper-than-expected economic downturn, which increased bets on further rate cuts by the Reserve Bank. GDP fell by 0.9% in the June quarter, which was worse than the forecasted 0.3% decline. This followed a revised growth of 0.9% in the previous quarter. The contraction was primarily due to weakness in the construction and manufacturing sectors, as well as a decline in exports. Markets are now fully pricing in a 25-basis-point rate cut in October, with the probability of a more significant 50-basis-point reduction estimated at around 25%. They also anticipate an additional 71 basis points of easing, up from 50 basis points previously. Additionally, data released today indicated that New Zealand’s trade deficit narrowed to NZ$1.2 billion in August, compared to NZ$2.3 billion in the same month last year. However, it still exceeded market expectations of NZ$0.7 billion.

• S&P 500 (US500) 6,631.96 +31.61 (+0.48%)
• Dow Jones (US30) 46,142.42 +124.10 (+0.27%)
• DAX (DE40) 23,674.53 +315.35 (+1.35%)
• FTSE 100 (UK100) 9,228.11 +19.74 (+0.21%)
• USD index 97.38 +0.51 (+0.52%)
   

News feed for: 2025.09.19

• New Zealand Trade Balance (q/q) at 01:45 (GMT+3);
• Japan National Core Consumer Price Index (m/m) at 02:30 (GMT+3);
• Japan BoJ Outlook Report at 06:00 (GMT+3);
• Japan BoJ Interest Rate Decision at 06:00 (GMT+3);
• UK Retail Sales (m/m) at 09:00 (GMT+3);
• Canada Retail Sales (m/m) at 15:30 (GMT+3).

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