By Promit Mukherjee and David Ljunggren OTTAWA (Reuters) - The Bank of Canada reduced its key policy rate to a three-year low of 2.5% on Wednesday, the first cut in six months, and said it would be ready to cut again if risks to the economy increased in coming months. The 25-basis-point cut reflected a weak jobs market and less concern about underlying pressures on inflation, the bank said. It paused its easing campaign in March after reducing rates by a total of 225 basis points in nine months, startin ...

Economic Indicators - U.S. retail sales rose 0.6% month-over-month in August, exceeding expectations [4] - U.S. industrial production increased by 0.1%, beating forecasts for a decline [4] - The NAHB/Wells Fargo Housing Market Index remained steady at 32 [4] Market Performance - The Dow Jones index closed down 126 points or 0.27% at 45,757.90, while the S&P 500 fell 0.13% to 6,606.76 [5] - Nasdaq Composite declined 0.066% to 22,333.96, and Russell 2000 dropped 0.087% to 2,403.03 [6] Company News - Dave & Buster's Entertainment Inc. reported weaker-than-expected results for its second quarter [4] - General Mills Inc. is expected to report earnings of 81 cents per share on revenue of $4.51 billion [16] - Manchester United PLC is anticipated to report an earnings loss of 6 cents per share on revenue of $225.80 million [16] - Cracker Barrel Old Country Store Inc. is expected to report earnings of 80 cents per share on revenue of $855.29 million [16] - Diversified Energy Company PLC dropped 6.10% after announcing a proposed secondary offering of 5,713,353 ordinary shares [16] - New Fortress Energy Inc. surged 54.40% following a long-term gas supply agreement with the Puerto Rican government [16] - Scisparc Ltd. jumped 154.35% after a court-granted stay in merger proceedings with AutoMax Motors Ltd. [16] - Nio Inc. advanced 3.85% following UBS's upgrade from Neutral to Buy and the shipment of a new model [16] - Workday Inc. climbed 5.58% after announcing the acquisition of AI startup Sana for $1.1 billion [16]

U.S. stock futures were swinging on Wednesday following Tuesday’s negative moves. Futures of major benchmark indices were mixed.President Donald Trump arrived in Britain on Tuesday evening for his second state visit, greeted with royal pageantry and the announcement of a multibillion-dollar U.S. technology investment in the United Kingdom. Investors await the Federal Reserve Open Market Committee’s decision, scheduled to be announced by this afternoon.Meanwhile, the 10-year Treasury bond yielded 4.01% and t ...

In today’s CEO Daily: Diane Brady on the reputation of the Fed. The big story: Trump administration moves against political opponents. The markets: Global markets are mixed; U.S. futures are down. Plus: All the news and watercooler chat from Fortune. Good morning. I remember the days when a raised eyebrow from Ben Bernanke would spark hours of debate over the then Fed chair’s mindset about the state of the economy. His predecessor, Alan Greenspan, bragged about learning to “mumble with great incoheren ...

Group 1 - The Federal Reserve is expected to cut its key interest rate by 25 basis points to the 4.00%-4.25% range, with further easing anticipated through the end of next year [2][3] - Global shares and gold have reached unprecedented highs due to expectations of a dovish Fed stance, while U.S. Treasuries and the dollar have weakened [3] - The Bank of Canada is also expected to cut rates amid trade frictions affecting labor markets [4] Group 2 - Japan's exports have declined for the fourth consecutive month, indicating the impact of tariffs imposed by the Trump administration on major economies [5] - Asian markets showed initial subdued performance but later improved, led by a 1.4% increase in Hong Kong's Hang Seng Index [5] - Key economic data releases include U.S. housing starts, British CPI, Euro zone CPI, and Germany's government debt auctions [6]

Market Overview - Asian stock markets are mostly trading lower, influenced by negative cues from global markets and concerns over the US Fed's anticipated interest rate cut [1][2] - Australian shares are notably lower, with the S&P/ASX 200 falling below 8,850, driven by weakness in mining and financial stocks [3][4] Australian Market Details - The S&P/ASX 200 Index decreased by 61.60 points or 0.69% to 8,816.10, while the All Ordinaries Index fell by 59.00 points or 0.65% to 9,092.20 [4] - Major miners like BHP Group and Rio Tinto are down over 1%, with Fortescue declining 1.5% and Mineral Resources slipping almost 3% [4][5] Company-Specific News - BHP announced plans to suspend operations and cut 750 jobs at a Queensland coking coal mine due to low prices and high state royalties [5] - In the tech sector, Afterpay owner Block is gaining almost 1%, while WiseTech Global and Xero are up more than 1% each [6] - PYC Therapeutics shares are down over 28% following the sudden resignation of CEO Dr. Rohan Hockings [7] Currency and Other Markets - The Australian dollar is trading at $0.668, while the Japanese stock market is modestly higher, with the Nikkei 225 up 93.52 points or 0.21% [8][9] - In the US market, major averages ended modestly lower, with the Dow down 125.55 points or 0.3% [14]

Core Viewpoint - The U.S. Federal Reserve has cut interest rates by 25 basis points, indicating a shift in their outlook on inflation and trade policies, which has led to fluctuations in the U.S. dollar against the euro and other currencies [1][2][4]. Group 1: Federal Reserve Actions - The Federal Reserve's recent rate cut is the first since December, lowering the policy rate to a range of 4.00%-4.25% [4]. - Projections suggest that two additional quarter-percentage-point cuts are expected at the remaining policy meetings this year, reflecting a more dovish stance from Fed officials [2][3]. - Fed Chair Jerome Powell described the rate cut as a risk management decision, emphasizing a cautious approach to future rate changes [5]. Group 2: Market Reactions - Following the rate cut, the U.S. dollar initially fell to a four-year low against the euro but later recovered, trading higher during a volatile session [1]. - The euro reached its highest level since June 2021 at $1.19185 before settling lower at $1.18305 against the dollar [6]. - The dollar index, which measures the U.S. currency against six others, increased by 0.3% to 96.926 [6]. Group 3: Economic Indicators - Data released indicated a decline in U.S. single-family homebuilding and permits for future construction in August, attributed to a surplus of unsold new houses and a weakening labor market [6]. - Analysts suggest that while the dollar may face further losses, external global economic conditions will also play a significant role in its performance [7].

Federal Reserve and Interest Rates - Wall Street anticipates a 25 basis-point interest rate cut from the Federal Reserve, with a 96% probability assigned to this outcome [2] - The Fed's "dot-plot" will be closely monitored for insights on future rate cuts throughout 2025 [3] - Fed Chair Jerome Powell's remarks during the press conference following the decision will be significant for market sentiment [3] Political Influence on the Federal Reserve - Concerns are rising regarding the independence of the Federal Reserve amid President Trump's influence and recent nominations [4] - Stephen Miran was confirmed to the Federal Reserve Board, indicating a potential shift in policy direction, while he plans to take a leave of absence from his White House advisor role [5] - Fed governor Lisa Cook remains on the board despite legal challenges, ensuring continuity in policy discussions [6] Market Reactions and Economic Indicators - Asian markets showed mixed reactions following tariff reductions on Japanese goods and expectations surrounding the Fed's rate cut [9] - Investors are also awaiting new data on housing starts and earnings reports from General Mills and Cracker Barrel [6] Gold Market Outlook - Deutsche Bank maintains a bullish outlook on gold, projecting a price target of $4,000 per ounce by 2026, citing favorable market conditions despite a significant price increase this year [7]

Corporate Developments - General Mills (GIS) reported quarterly sales that exceeded estimates, but shares declined due to warnings about a challenging consumer environment [6] - Cracker Barrel (CBRL) is under scrutiny following controversy over its now-abandoned logo change, with results being closely watched [6] - Nvidia (NVDA) shares fell by 1.5% in premarket trading after reports that China has instructed major tech companies, including Alibaba, not to purchase its AI chips, effectively banning tens of thousands of orders [5] Economic Indicators - The interest rate on a 30-year mortgage has dropped to its lowest level since October 2024, leading to a nearly 60% increase in refinancing applications, the highest since March 2022 [5]

US stocks diverged on Wednesday in the countdown to the end of Federal Reserve's policy meeting, overwhelmingly expected to usher in the first US interest rate cut of 2025. The Dow Jones Industrial Average (^DJI) moved up nearly 0.7%, while the S&P 500 (^GSPC) nudged down 0.1%, Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) fell over 0.5%. The major US gauges ended Tuesday little changed to stay within reach of record highs. Investors are keeping their powder dry in anticipation that the Fed will st ...