Stocks, bonds and bitcoin rebound ahead of Fed rate cut
Global markets stabilized Tuesday as stocks rose and cryptocurrencies recovered from a sharp Monday selloff triggered by signals from the Bank of Japan that it may raise interest rates this month, with investors now focused on an expected Federal Reserve rate cut next week.
Global shares rose on Tuesday, with Wall Street stocks gaining after a previous session's losses, driven by technology and industrial shares. Cryptocurrencies and global government bonds stabilized following a selloff triggered by a looming interest rate hike in Japan. Investors anticipate a U.S. Federal Reserve interest rate cut, supported by data indicating manufacturing contraction and strong holiday shopping. The probability of a 25 basis-point rate cut at the Fed's meeting next week is 87.2%, according to CME's FedWatch tool. Japanese government bond yields eased after a strong auction result, and the dollar strengthened against the yen.
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