China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
ECB Rate Cuts: A Historic Move
Traders increased their bets on rapid European Central Bank (ECB) rate cuts after the bank announced its first consecutive cuts in 13 years. On Thursday, the ECB lowered its deposit rate by 25 basis points (bps) to 3.25%, following a similar move in September. This marks the first back-to-back cut since 2011.
Economic Outlook and ECB Policy
A deteriorating economic outlook and signs of controlled inflation prompted the ECB's decision. Policymakers emphasized their commitment to a data-driven approach, stating they would maintain restrictive monetary policy as necessary.
Market Reactions and Predictions
With ECB President Christine Lagarde facing minimal pushback, traders are increasingly pricing in a 29 bps cut for the upcoming December meeting. Some analysts anticipate the possibility of a more substantial 50 bps cut, given the current economic conditions.
Euro's Performance and Future Risks
The euro fell to $1.0811, its lowest point since early August. As traders predict 160 bps of cuts by the end of 2025, eurozone government bonds have shown resilience, outperforming U.S. Treasuries in October. However, the euro remains vulnerable, especially with uncertainties surrounding the upcoming U.S. presidential election.
Conclusion
The ECB's recent rate cuts reflect a significant shift in monetary policy amid economic challenges. As traders adjust their expectations, the euro and eurozone markets face ongoing scrutiny.
