Market Reactions to Fed Rate Cut and Global Economic Outlook

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FED,INTEREST RATES,ECONOMY

This report analyzes the market's response to the Federal Reserve's recent interest rate cut and examines the global economic outlook for 2025 as predicted by major investment banks.

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. The Federal Reserve cut its key interest rate by 25 basis points on Wednesday, taking its overnight borrowing rate to a target range of 4.25%-4.5%. In the Fed's dot plot indicating expectations for rates in the years ahead, the central bank mostly indicated.

Following that, the yen weakened to a one-month low against the dollar. Analysts had been divided over the BOJ's move: Ashowed 54% of respondents thought the BOJ would hold, while a poll of economists by Reuters expected the BOJ to raise rates., even though it beat expectations on earnings for its last quarter. For the current quarter, Micron expects revenue to come in around $7.9 billion. That's far less than the $8.98 billion expected by analysts, according to LSEG. As the year winds down, major investment banks are putting forth their outlook on the European market for 2025. Their views range from the Wednesday's dramatic sell-off in markets is a stark reminder that forecasts influence stock movements much more than current circumstances. The Fed cut its key interest rate by 25 basis points. Borrowing costs will go down and corporate investment should be stimulated, which should lead to job creation and boost growth. That, in turn, theoretically pushes up stocks. But investors were already confident about the Fed's cut Wednesday. Prior to the conclusion of the Fed's December meeting, the futures market indicated a 98% chance of a 25 basis points cut, according to the. That means investors had already priced in the benefits of the rate reduction into stocks. In other words, yesterday's cut would have little bearing on stock prices. Investors were perhaps already pricing in more than a single reduction in rates. A week ago, investors were betting on a 20.8% chance of the Fed lowering rates to 4%-4.25% in Januar

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