• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Fed set to deliver 3rd rate cut and Honda Nissan merger – what’s moving markets

by December 18, 2024
written by December 18, 2024

Investing.com – The Federal Reserve is all but certain to deliver what would be its third straight rate cut, futures are edging higher, and Honda and Nissan are reportedly exploring a merger.

1. Fed set to deliver rate cut

The Federal Reserve concludes its final policy meeting of the year later Wednesday, with a 25-basis point rate cut almost fully priced in by markets.

With a rate cut already baked in investors are instead focusing on the Fed’s economic projections and comments from Chair Jerome Powell, for any insights on how aggressive the U.S. central bank may be in cutting rates in 2025.

Goldman Sachs expects the Fed to stand pat in January against earlier expectations for a cut, after unemployment has undershot and inflation has overshot the FOMC’s projections.

Analysts at Standard Chartered expect the Fed to follow up with another rate cut in January amid ongoing softness in the labor market.

“Our baseline forecast is that it cuts again on 29 January, because we expect the incoming labour market data to soften further,” the bank said, in a recent note.

2. Futures edge higher

US stock futures edged higher on Wednesday, as investors braced for the final Fed rate decision of the year.

By 03:53 ET (08:53 GMT), the Dow futures contract was up 69 points, or 0.1%, S&P 500 futures were up 4 points, or 0.1%, and Nasdaq 100 futures rose 23 points, or 0.1%.

The main Wall Street indices ended lower on Tuesday with the Dow down for a ninth straight session, as investors stayed on the sidelines ahead of the Fed decision.

Data on Tuesday showed that retail sales rose more than expected in November, indicating that consumer spending, a major driver of economic growth, remains solid.

3. Oil mixed as Fed awaited

Oil prices were mixed on Wednesday as energy traders awaited the Fed rate decision and weighed the potential supply impact of tighter sanctions on Russia.

The European Union on Tuesday adopted a fresh package of sanctions against Russia over its invasion of Ukraine, targeting its shadow fleet used for transporting crude or petroleum products. Britain also sanctioned ships carrying illicit Russian oil.

By 04:05 ET, crude oil WTI futures were up 0.2% to trade at $70.25 a barrel,  while the Brent contract was up 0.5% to $73.70 a barrel.

The Fed is widely expected to cut interest rates for the third time since its policy easing cycle began. Lower rates decrease borrowing costs, which can boost economic growth and demand for oil.

4. Honda, {0|Nissan}} explore merger, Foxconn also interested in stake

Taiwanese electronics giant Foxconn (SS:601138) has approached Japanese automaker Nissan (TYO:7201) with a proposal to acquire a controlling stake, according to Bloomberg.

The move underscores Foxconn’s ambition to become a major player in the global electric vehicle market.

While the company has been investing heavily in its own EV business, Foxtron Vehicle Technologies, an acquisition of Nissan would provide immediate access to existing models and a global sales network.

The news comes amid reports that Nissan and Honda (TYO:7267) are also in talks about a possible merger as the automakers grapple with challenges in the EV industry, particularly from China.

5. Profit taking hits Bitcoin ahead of Fed

Bitcoin slipped on Wednesday after hitting a fresh record high, as the digital currency saw profit-taking ahead of an expected Fed rate cut.

Bitcoin fell 3% to $104,046.0 by 03:53 ET (08:53 GMT), after breaching the $108,000 level a day earlier.

The world’s largest cryptocurrency hit an all-time high of $108,244 on Tuesday buoyed by hopes for a more pro crypto environment under incoming President Donald Trump who has raised the prospect of a Strategic Bitcoin Reserve.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Mozambique’s post-election unrest to hit economic growth, says IMF official
next post
G20 watchdog urges governments to address non-bank financial risks

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!








    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • UPS is ‘disposing of’ U.S.-bound packages over customs paperwork problems

      October 13, 2025
    • China outlines more controls on exports of rare earths and technology

      October 10, 2025
    • Paramount acquires Bari Weiss’ The Free Press, naming her the top editor of CBS News

      October 7, 2025
    • YouTube to pay $24 million to settle Trump lawsuit

      October 1, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (652)
    • Stock (6,426)

    Latest News

    • UPS is ‘disposing of’ U.S.-bound packages over customs paperwork problems
    • China outlines more controls on exports of rare earths and technology

    Popular News

    • Court rejects Boeing plea deal tied to 737 Max crashes
    • Ross Stores lifts annual profit forecast on lower costs, shares rise

    About The Significant deals

    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy