Fed’s interest rate to fall as two-year hawkish policy cycle is anticipated to end

(MENAFN) The market anticipates that the Federal Reserve's final interest rate will likely range between 5.25 percent and 5.50 percent, marking the end of the bank's two-year hawkish policy cycle.

Forecasts suggest a potential policy rate cut starting from June next year, influencing a buying-weighted trend in bond markets. The US 10-year bond yield remained steady at 4.40 percent.

In terms of macroeconomic indicators, new home sales in the US for October declined by 5.6 percent on a monthly basis to 679,000, falling below market expectations.

The dollar index also experienced a 0.2 percent decrease to 103.2, reflecting pressure amid expectations of the Fed considering interest rate cuts in the first half of the next year.

Meanwhile, the price of gold per ounce rose to USD2,018 on Monday, reaching its highest level since May.

In geopolitical developments, a two-day extension of the humanitarian pause between Hamas and Israel was announced.

The Brent oil barrel price remained stable at USD79.8, continuing a downward trend for the fifth consecutive working day.

On the New York Stock Exchange, the Nasdaq index decreased by 0.07 percent, the S&P 500 index by 0.2 percent, and the Dow Jones index by 0.16 percent on Monday. Index futures contracts in the US started Tuesday with a mixed course.

While European stock markets followed a sales-heavy trend on Monday, European Central Bank Governor Christine Lagarde mentioned that headline inflation in the Eurozone might rebound in the coming months.


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