(WSN) – Global stock markets held steady on Wednesday after a prolonged rally pushed them toward recent record highs, with investors waiting for insights on potential interest-rate cuts from the Federal Reserve on Friday before making their next moves.
Oil prices stabilized following a series of declines linked to expectations of decreased demand from China, while the weakening dollar, in anticipation of rate cuts, kept gold prices close to Tuesday’s record high.
The MSCI All Country index for global equities was virtually unchanged, remaining near its mid-July peak and up 13.5% for the year.
In Europe, the STOXX 600 index, which tracks 600 companies, rose by 0.27%, approaching its all-time high set on June 7.
Stocks have experienced significant fluctuations this month, initially driven by concerns over U.S. jobs data suggesting a possible recession in the world’s largest economy.
However, these concerns have shifted to expectations of a soft economic landing supported by anticipated cuts in U.S. borrowing costs starting in September.
On Wednesday, the U.S. Labor Department reported that employers added far fewer jobs than previously estimated for the year through March, highlighting growing concerns for the Federal Reserve regarding the labor market’s health as it prepares to begin interest rate cuts in September.
