Fitch Says Expect Both U.S. Federal Reserve And ECB To Cut Rates Three Times, By A Total Of 75 Basis Points, By Year-End
Portfolio Pulse from Benzinga Newsdesk
Fitch Ratings predicts the U.S. Federal Reserve and the European Central Bank (ECB) will each cut rates three times, totaling 75 basis points, by the end of the year, according to Reuters.
March 13, 2024 | 4:55 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
SPY, tracking U.S. equities, may see increased investor interest as rate cuts typically boost stock markets.
Rate cuts by the Federal Reserve generally lead to lower borrowing costs, encouraging spending and investment. This can result in higher stock prices, making SPY, which tracks a broad range of U.S. stocks, likely to benefit.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
VGK, tracking European equities, may gain as ECB rate cuts could stimulate the European economy, potentially boosting stock prices.
ECB rate cuts are aimed at stimulating the European economy by reducing borrowing costs, which can lead to increased spending and investment. This economic boost is likely to positively impact European stock markets, benefiting VGK, which tracks European equities.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80