Core Viewpoint - Swedish bank Handelsbanken reported a smaller-than-expected decline in third-quarter net profit, indicating resilience in its financial performance despite central bank rate cuts impacting the broader banking sector [1] Financial Performance - The bank's interest income narrowly exceeded forecasts, contributing to the better-than-expected profit results [1]

Core Insights - The U.S. Federal Reserve is expected to implement its first rate cut of the year, with speculation on whether it will be 25 or 50 basis points [1][2] - The Bank of Canada is also anticipated to reduce rates, while the Bank of England and Bank of Japan are likely to maintain their current rates [3] - Geopolitical risks, including Fitch's expected downgrade of France's credit rating, have not significantly impacted market sentiment, as Fitch's outlook remains stable [4] Market Developments - The MSCI's Asia-Pacific ex-Japan index is near four-year highs, and South Korea's Kospi reached a record high after a tax hike on stock investments was canceled [5] - U.S.-China trade talks are ongoing, focusing on tariffs related to China's oil purchases from Russia and the divestment from TikTok [5][6] - U.S. Democrats are urging the Trump administration to address China's "structural overproduction" as part of broader economic reforms [6]

By Sara Rossi and Alun John LONDON (Reuters) -The U.S. Federal Reserve is an outlier among central banks in developed markets, as it looks set to resume rate cuts just as many of its peers are reaching the end of their easing cycles. The European Central Bank (ECB) left rates unchanged on Thursday, while Japan is expected to hike rates before the year is out. Here's where 10 major central banks stand: 1/ SWITZERLAND The Swiss National Bank meets on September 25. After it cut its key rate to 0% in June ...

Group 1: Dollar Index and Federal Reserve Expectations - The dollar index fell by -0.32%, reaching a new 1.5-month low due to a weak US unemployment report and increased expectations for Federal Reserve easing [1] - Markets are now pricing in a 15% chance of a 50 basis point rate cut at the upcoming FOMC meeting, a significant shift from previous expectations of zero chance [2] - An overall -75 basis point rate cut in the federal funds rate is anticipated by year-end, reducing the rate from 4.38% to 3.62% [2] Group 2: Euro Performance and Economic Indicators - The EUR/USD rose by +0.40%, reaching a 1.5-month high, supported by a weaker dollar and expectations that the ECB is nearing the end of its rate-cut cycle [3] - German industrial production for July increased by +1.3% month-over-month, exceeding expectations, marking the largest increase in four months [5] - The Eurozone September Sentix investor confidence index unexpectedly fell to a 5-month low of -9.2, indicating weaker investor sentiment [4] Group 3: Geopolitical and Political Factors - Ongoing diplomatic challenges in Ukraine and political uncertainty in France are negatively impacting the euro [4] - French Prime Minister Bayrou lost a confidence motion in parliament, contributing to the political instability affecting the euro [4]