Premarket: Global stocks sluggish after Fed signals no quick rate cuts

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U.S. futures up ahead of Apple results; yen backtracks after another suspected intervention

World markets wobbled in Thursday trading after U.S. stocks swung to a mixed finish with the Federal Reserve delaying cuts to interest rates, while the yen backtracked after another suspected bout of foreign-exchange intervention.

While Fed chair Jerome Powell indicated that stubbornly high inflation would see a long-expected U.S. rate cut pushed back, he refused to entertain talk that rates might actually need to go up again. Kyle Rodda, senior financial market analyst at Capital.com in Melbourne, said it had been another “sneak attack” by Japan’s authorities “looking to punish speculators and send a warning about shorting the yen”.

Europe’s dealers had nudged the euro up 0.1 per cent in the other direction to US$1.0727 despite data showing a deepening downturn in euro zone manufacturing activity. The Fed’s signals were still being digested by bond markets, which were also starting to refocus on key U.S. non-farm payrolls data on Friday.

 

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