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Premarket: Global stocks steady as traders brace for Fed easing

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Traders still debating odds of 50 basis points or 25 basis points cut

The dollar slipped on Wednesday while Treasury yields edged higher and global stocks steadied as traders weighed the odds of a super-sized Federal Reserve interest rate cut later in the day.

The chances of the Fed kicking off its easing cycle with a super-sized cut of 50 basis points were revived earlier this week, after media reports raised the prospect of more aggressive action. “The worst that you can get is they go 25 and pretend that everything is normal and that monetary policy still needs to be restrictive.”The MSCI’s index of world stocks was flat after having touched a two-week high a day earlier and just below an all-time high.

 

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