HONG KONG (AFP) – Growing hopes that the United States (US) Federal Reserve and other central banks are close to cutting interest rates helped push London and Frankfurt to records yesterday, while Asian markets also chalked up healthy gains.
Traders tracked gains in New York and Europe as they cheered fresh US data indicating the labour market was beginning to soften, giving central bankers room to ease monetary policy.
The forecast-beating figures showing that unemployment claims rose to their highest level since August followed last Friday’s news that far fewer new posts were created in April than expected.
US Treasury bond yields, a proxy for interest rates, moved lower.
The readings soothed worries that borrowing costs would remain elevated through the year after a series of above-estimate inflation readings in the first four months.
Still, speculation is growing that the Fed will cut rates in September, though analysts…
