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The key points from today’s economic news, brought to you by Guardian Stockbrokers.
UK consumer confidence eased in October
In the UK, the consumer confidence registered a drop to a level of -14.00 in October, compared to a reading of -12.00 in the prior month. Markets were anticipating the consumer confidence to ease to a level of -13.00.
Euro-zone business climate indicator unexpectedly advanced in October
In the Euro-zone, the business climate indicator climbed unexpectedly to a level of -0.19 in October, compared to a revised level of -0.23 in the previous month. Markets were expecting the business climate indicator to fall to a reading of -0.24.
US annualised GDP rose more than expected in 3Q 2019
In the US, the preliminary gross domestic product (GDP) climbed 1.90% on a quarterly basis in 3Q 2019, higher than market expectations for an advance of 1.70%. In the previous quarter, the annualised GDP had registered a rise of 2.00%.
Fed cuts key interest rates, signals pause in easing cycle
The US Fed, in its latest monetary policy meeting, slashed its benchmark interest rate by 0.25% to a target range of 1.50% to 1.75%, citing slowdown in the US economic growth and ongoing trade tensions. Further, the Fed Chairman, Jerome Powell, indicated that the central bank would keep interest rates steady for the foreseeable future, given its economic outlook of moderate economic growth, a strong labour market and inflation growing at around 2.00%. Further, he stated that the current stance of monetary policy is “likely to remain appropriate” as long as “the outlook remains broadly in keeping with our expectations.”
BoC holds key interest rate steady
The Bank of Canada (BoC), in its latest monetary policy meeting, kept its benchmark interest rate steady at 1.75%, as widely expected, but left the door open to a possible rate cut in near future. The central bank stated the resilience of the Canadian economy will be increasingly tested as trade conflicts and uncertainty persist. Further, it would monitor the extent to which the global slowdown spreads beyond manufacturing and investment in its monetary policy considerations, while also observe consumer spending, housing activity and fiscal policy developments.
BoJ keeps its key interest rate unchanged
The Bank of Japan (BoJ), in its latest monetary policy meeting, left the key interest rate steady at -0.10%, as widely expected. The central bank signalled that it may cut interest rates in future, highlighting its concern that overseas risks could derail the country’s fragile economic recovery.
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