Stocks and dollar drift higher after Fed cut, focus turns to BoE

Market Reactions - Stocks and the dollar increased following the U.S. Federal Reserve's first interest rate cut of the year, with the pan-European STOXX 600 and Wall Street futures rising by 0.5% [1] - Asian markets also saw gains, with Chinese stocks reaching a 10-year high due to local chipmakers reacting positively to Nvidia's ban in China, while South Korea, Taiwan, and Japan's Nikkei all ended more than 1% higher [1] Currency Movements - The dollar rose nearly 0.2% after hitting a 3-1/2-year low earlier in the week, which had negatively impacted non-U.S. exporting firms [2] - The euro remained steady at $1.1825, and the British pound held at $1.36 ahead of the Bank of England's anticipated decision to maintain UK rates at 4% [4] Central Bank Insights - The Fed's "dot plot" indicated two more rate cuts are expected in the remaining meetings of the year, with only one additional reduction projected for 2026 [2] - Fed Chair Jerome Powell suggested that the central bank does not need to act quickly, although analysts believe this could change depending on market conditions [3] UK Monetary Policy - A Reuters poll indicated that economists expect the Bank of England to slow its bond reduction pace to a median of 67.5 billion pounds ($92.2 billion), a larger decrease than previously anticipated [5] - The recent volatility in UK bond markets has raised interest in whether the Bank of England will adjust its current strategy [4]