Rising US stock markets set the tone for Thursday morning’s Asian session.
Fed interest rate path remains market-friendly
Investors remained focused on the Fed’s interest rate movements. Expectations that the Fed would cut interest rates by 25 basis points (bp) in November supported demand for riskier assets. According to the CME FedWatch tool, the probability that the Fed will cut interest rates by 25 basis points fell from 97.0% (October 15th) to 92.1% (October 16th). Furthermore, the probability that the Fed will cut interest rates by 25 basis points in December is now 84.3%.
Recent US economic data has strengthened investors’ expectations that the US economy will have a soft landing. Fed rate cuts and a soft landing paint a positive picture for riskier assets.
China announces new measures to strengthen housing sector
On Thursday, October 17, CN Wire reported the latest information from China, reporting that government officials announced new measures aimed at stimulating the housing market. According to CN Wire,
“Minister Nee also said that all residential real estate projects will be included in the whitelisting program in order to receive financing assistance.According to officials, the benefit of the whitelisting mechanism is that property management will be more standardized. , it will speed up financing and protect the legitimate rights of homebuyers.
Additionally, the Vice Governor of the People’s Bank of China said that most of the current mortgage rates will be revised by October 25th and changed by October 30th. Existing mortgage rate reductions account for 90% of current mortgages.
