Wells Fargo Advisors SVP Mark Smith is doubling down on his assertion that the Fed won’t raise interest rates this year and analyzing the gold market for “money making.”
Investors flocked to exchange-traded funds (ETFs) tracking European stocks after the Bank of England made no changes at Thursday’s meeting but dangled the carrot about the timing of future interest rate cuts.
“We need to see further evidence that inflation will remain low before cutting rates, but we are optimistic that things are moving in the right direction,” Ban of England Governor Andrew Bailey said. said.
The iShares MSCI Eurozone ETF soared and remained at its highest since June 2008, capping a sixth straight day of gains, according to the Dow Jones Market Data Group.
According to iShares, the fund targets mid- and large-cap stocks that use the euro as the official currency. Top holdings include luxury company LVMH, software company SAP and oil giant Total Energy.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Ezu | ISHARES INC MSCI Eurozone ETF USD | 51.63 | +0.48 | +0.94% |
The euro-focused ETF is up 8% this year.
Additionally, the SPDR Euro Stoxx 50 ETF is also trending towards its highest close since June 2008, and the Vanguard FTSE Europe ETF is aiming for its highest close since January 2022.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Fes | SPDR Index Shares Fund Euro STOXX50 ETF | 52.84 | +0.48 | +0.92% |
| VGK | VANGUARD INTL EQUITY INDEX FUND INC MSCI Europe ETF | 68.57 | +0.55 | +0.81% |
Bailey said Britain’s annual consumer price index inflation rate was 3.2% in March, down from about 10% a year ago but still above the 2% inflation target in the United States.
Federal Reserve Chairman Jerome Powell speaks during a press conference at the William McChesney Martin Bank Building in Washington, DC, May 1, 2024. ((Photo credit: Chip Somodevilla/Getty Images))
Latest information on mortgage interest rates
like bailey Federal Reserve Chairman Jerome Powell The government is also trying to bring inflation down to a level where interest rate cuts are appropriate, but with inflation stuck at 3.5%, that becomes an even more difficult task.
Fed Chairman Jerome Powell remains troubled by inflation
“Inflation numbers are better than expected,” Powell said at a press conference in Washington, D.C., after the May meeting. “Achieving this much confidence is likely to take longer than previously expected,” he warned.
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Investors now expect the first rate cut to occur in September 2024, the newspaper said. CME’s FedWatch tool, Track the probability of rate changes.
