BANGKOK : Global shares mostly rose Thursday after Federal Reserve Chairman Jerome Powell suggested the U.S. central bank is ready to cut interest rates for the first time in a decade.
The Fed chairman told Congress in his semi-annual report that many in the U.S. central bank believe a weakening global economy and rising trade tensions have strengthened the case for a rate cut. That allayed investors’ concerns that unexpectedly strong U.S. jobs data reported Friday might give the Fed reason to hold interest rates.
Powell is due to appear before the Senate Banking Committee on Thursday but his testimony is not expected to have the same sort of impact.
Shares in Europe were uneven with Germany’s DAX losing 0.1% to 12,360 and Britain’s FTSE 100 flat at 7,529. The CAC 40 in France added 0.1% to 5,575.
Wall Street looked set to extend its winning streak, with Dow futures up 0.3% to 26,951 and the broader S&P 500 futures 0.2% higher at 3,005.
The U.S. stock market rallied through much of June after the Fed first signaled that it might cut rates if necessary to shore up the U.S. economy.
The Fed’s benchmark rate currently stands in a range of 2.25% to 2.5% after the central bank raised rates four times last year. Many investors have put the odds of a rate cut this month at 100%.