Stock prices in London closed in the green on Wednesday, following the Bank of Canada’s rate cut and ahead of the US Federal Reserve’s own announcement, at which its own reduction is expected.
“Markets have fully priced in a 25-basis-point (US) rate cut, but the key lies in the updated summary of economic projections and (Fed Chairman Jerome) Powell’s tone,” commented Naga analyst Frank Walbaum. “Should policymakers reinforce the prospect of multiple cuts in the next months, equities could edge higher. Conversely, any signs of hesitation may trigger profit-taking at current levels.”
