Rate cuts are coming – and markets are ecstatic

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• Shares climbed Thursday after Federal Reserve Chairman Jerome Powell announced that the central bank would lower interest rates this month.
• "A rate cut in July seems self-evident as Powell cites geopolitical uncertainties and slowing global growth as reasons why a simpler policy will help support national expansion," said Konstantinos Anthis, head of state. of research at ADSS.
• Oil prices rose after three Iranian ships attempted to prevent a British tanker from entering the Strait of Hormuz, dispelling fears of regional tensions leading to supply disruptions.
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Shares climbed on Thursday after Federal Reserve Chairman Jerome Powell announced that the central bank would lower interest rates this month, rebaduring investors who feared solid US employment data United does not reduce the chances.

"A rate cut in July seems self-evident as Powell cites geopolitical uncertainties and slowing global growth as reasons why a simpler policy will help support national expansion," said Konstantinos Anthis, head of state. of research at ADSS.

The minutes of the June Fed meeting were released during Powell's testimony to Congress, indicating that market expectations had also been taken into account in the central bank's decision.

"While overall financial conditions still supported growth, these conditions appeared to be largely based on expectations that the Federal Reserve would relax its policy in the near term to help offset the slowdown in economic growth resulting from uncertainties about the outlook. global and other downside risks, "the minutes read.

However, we do not know what the Fed has planned for the coming months.

"Doubts remain as to whether it will be the first of several cuts or just an" insurance discount "designed to keep the markets on an even keel. equal, "said Neil Wilson, chief market badyst for Markets.com.

Here is the round view of the market at 9:05 (4:05):

Asian stocks climbed with the Composite of Shanghai up 0.1%, in Japan Nikkei up 0.5% and Hong Kong Hang Seng up 0.7%.

European equities rose with those of Germany DAX up 0.2% and the Euro Stoxx 50 and Great Britain FTSE 100 up 0.3%.

US markets should open higher with futures contracts underlying Dow Jones Industrial Average and S & P 500 up 0.2% and Nasdaq futures contracts up 0.3%.

Oil prices jumped after three Iranian ships attempted to prevent a British tanker in the Hormuz Strait from dispelling fears of regional tensions that could lead to supply disruptions. West Texas Intermediate crude was up 0.6% to $ 60.80 and Brent gross growth of 0.6% to $ 67.40.

Gold climbed 0.8% to $ 1,424.

Bitcoin dropped 10% to about $ 11,600.