Dubai Telegraph - US, European stocks rise on retail sales, rate cut expectations

EUR -
AED 3.874129
AFN 71.760983
ALL 98.501428
AMD 413.068904
ANG 1.901768
AOA 960.851959
ARS 1063.429658
AUD 1.625107
AWG 1.901174
AZN 1.790137
BAM 1.960453
BBD 2.130606
BDT 126.100456
BGN 1.953695
BHD 0.397556
BIF 3117.528047
BMD 1.054743
BND 1.41713
BOB 7.292133
BRL 6.146938
BSD 1.055279
BTN 89.100297
BWP 14.416007
BYN 3.453314
BYR 20672.964894
BZD 2.126997
CAD 1.480928
CDF 3028.167286
CHF 0.930964
CLF 0.037363
CLP 1030.947691
CNY 7.643615
CNH 7.651971
COP 4652.69334
CRC 538.984223
CUC 1.054743
CUP 27.950692
CVE 110.525727
CZK 25.305348
DJF 187.911496
DKK 7.458532
DOP 63.611565
DZD 140.829224
EGP 52.36388
ERN 15.821147
ETB 133.379874
FJD 2.391788
FKP 0.832527
GBP 0.833933
GEL 2.879631
GGP 0.832527
GHS 16.408552
GIP 0.832527
GMD 74.886917
GNF 9093.667226
GTQ 8.141321
GYD 220.768694
HKD 8.208069
HNL 26.689339
HRK 7.523756
HTG 138.399761
HUF 413.103319
IDR 16729.649578
ILS 3.857175
IMP 0.832527
INR 89.042255
IQD 1382.393791
IRR 44391.497697
ISK 144.743224
JEP 0.832527
JMD 166.685577
JOD 0.748127
JPY 159.809428
KES 136.641598
KGS 91.553814
KHR 4246.016223
KMF 494.621646
KPW 949.268396
KRW 1469.462772
KWD 0.324249
KYD 0.879374
KZT 530.363683
LAK 23170.43868
LBP 94496.21778
LKR 307.071651
LRD 188.885575
LSL 19.145736
LTL 3.114382
LVL 0.638004
LYD 5.163253
MAD 10.573293
MDL 19.326591
MGA 4937.600837
MKD 61.47573
MMK 3425.764468
MNT 3584.01702
MOP 8.456649
MRU 41.94956
MUR 49.277267
MVR 16.295411
MWK 1829.799092
MXN 21.887608
MYR 4.685695
MZN 67.398531
NAD 19.145736
NGN 1782.547466
NIO 38.832156
NOK 11.696563
NPR 142.555934
NZD 1.787477
OMR 0.40602
PAB 1.055279
PEN 3.971726
PGK 4.254997
PHP 61.968288
PKR 293.223155
PLN 4.309628
PYG 8248.575445
QAR 3.846136
RON 4.976908
RSD 117.002541
RUB 116.965572
RWF 1454.030012
SAR 3.962385
SBD 8.849917
SCR 14.651265
SDG 634.427379
SEK 11.5389
SGD 1.415666
SHP 0.832527
SLE 23.925363
SLL 22117.440574
SOS 603.117017
SRD 37.327888
STD 21831.052794
SVC 9.234002
SYP 2650.073549
SZL 19.142611
THB 36.367648
TJS 11.31739
TMT 3.702148
TND 3.327998
TOP 2.470317
TRY 36.553147
TTD 7.163067
TWD 34.301622
TZS 2790.439997
UAH 43.935626
UGX 3894.149259
USD 1.054743
UYU 45.226259
UZS 13557.854023
VES 49.252486
VND 26774.653767
VUV 125.221221
WST 2.944411
XAF 657.508041
XAG 0.034778
XAU 0.000399
XCD 2.850496
XDR 0.807196
XOF 657.517414
XPF 119.331742
YER 263.606707
ZAR 19.188514
ZMK 9493.950888
ZMW 28.781622
ZWL 339.62685
  • AZN

    0.7550

    67.115

    +1.12%

  • CMSC

    0.0090

    24.579

    +0.04%

  • NGG

    0.6900

    63.52

    +1.09%

  • GSK

    0.3750

    34.395

    +1.09%

  • BCC

    -0.9300

    147.48

    -0.63%

  • BTI

    0.4250

    38.135

    +1.11%

  • JRI

    0.1610

    13.401

    +1.2%

  • SCS

    0.0200

    13.56

    +0.15%

  • RIO

    0.5400

    62.57

    +0.86%

  • CMSD

    -0.0220

    24.408

    -0.09%

  • RYCEF

    -0.0200

    6.78

    -0.29%

  • RBGPF

    1.0000

    62

    +1.61%

  • BCE

    0.6400

    27.27

    +2.35%

  • BP

    0.2400

    29.2

    +0.82%

  • RELX

    0.3700

    47.18

    +0.78%

  • VOD

    0.1450

    9.005

    +1.61%

US, European stocks rise on retail sales, rate cut expectations
US, European stocks rise on retail sales, rate cut expectations / Photo: MANDEL NGAN - AFP

US, European stocks rise on retail sales, rate cut expectations

US and European stocks rose Tuesday, lifted by better than expected retail sales figures out of the United States and by anticipation of a hefty interest rate cut from the Federal Reserve.

Text size:

The Dow in New York was headed for another record close as the wider S&P and the tech-heavy Nasdaq were also higher in midday trading.

All the main indexes ended the session higher IN Europe.

The Fed begins its two-day meeting Tuesday, with Fed boss Jerome Powell having already signalled that slowing inflation will allow the central bank to cut rates for the first time in four years when it reports its decision on Wednesday.

Debate has focused on whether officials will go for 25 basis points or 50, with some warning that the bigger option could signal there is some concern about the economy.

Earlier Tuesday, the Commerce Department reported that consumer spending cooled in August, but not as much as analysts had expected, indicating the economy remains healthy.

Retail sales were up 0.1 percent in the month, while expectations had been for a 0.2 percent drop.

"Investors are walking a tightrope in the short term, as the market is cheering for lower inflation but is looking for signs of strength from the consumer," said Bret Kenwell, an analyst at eToro.

"It's a difficult balancing act to see pricing pressures ease without a large dropoff in demand, but we continue to inch toward that reality," he said.

Bets on the US central bank opting for a super-sized cut have jumped in recent days, with observers suggesting officials want to go big before a series of smaller reductions.

"It is extremely rare to go into a Fed meeting with such a high level of uncertainty," said David Morrison, analyst at Trade Nation. "This means there is likely to be considerable volatility after the announcement."

The expectations of lower interest rates have hurt the dollar in recent days, but it steadied Tuesday.

The dollar sank below 140 yen on Monday for the first time in over a year as lower rates make the US currency less attractive to investors.

A string of data in the past few months has indicated that US inflation is easing back to the Fed's two-percent target.

At the same time, the labour market has slowed, giving decision-makers room to loosen monetary policy while also fanning fears of recession.

Some analysts said Tuesday's retail sales report strengthened the case for the Fed going for the more cautious 25 basis point option Wednesday.

"Anyone looking for a weak print that solidified hopes for a 50bp rate cut tomorrow must have been disappointed. There is no evidence that the US consumer is weakening," said Kathleen Brooks, research director at trading platform XTB.

There are concerns too over Europe's biggest economy Germany as a survey Tuesday showed investor confidence fell significantly more than expected this month.

The ZEW institute's closely-watched economic expectations index fell to 3.6 points, down sharply from 19.2 points in August.

But the Frankfurt stock market was up in mid-afternoon deals.

Support has come from the European Central Bank's decision last week to cut rates for the second time this year, according to analysts.

The Bank of England will also hold a policy meeting on Thursday but is widely expected to maintain its key interest rate at 5.0 percent.

Earlier, Tokyo closed down one percent as a strong yen weighed on Japanese exporters.

- Key figures around 1235 GMT -

New York - Dow: UP 0.4 percent at 41,779.85 points

New York - S&P 500: UP 0.4 percent at 5,654.35

New York - Nasdaq Composite: UP 0.6 percent at 17,702.95

London - FTSE 100: UP 0.4 percent at 8,309.86

Paris - CAC 40: UP 0.5 percent at 7,487.42

Frankfurt - DAX: UP 0.5 percent at 18,726.08

Tokyo - Nikkei 225: DOWN 1.0 percent at 36,203.22 (close)

Hong Kong - Hang Seng Index: UP 1.4 percent at 17,660.02 (close)

Shanghai - Composite: Closed for a holiday

Euro/dollar: DOWN at $1.1118 from $1.1131 on Monday

Pound/dollar: DOWN at $1.3164 from $1.3216

Dollar/yen: UP at 141.76 yen from 140.63 yen

Euro/pound: UP at 84.47 pence from 84.22 pence

West Texas Intermediate: UP 1.3 percent at $71.03 per barrel

Brent North Sea Crude: UP 0.9 percent at $73.39 per barrel

H.Hajar--DT