Asia shares rally on hopes for more rate cuts this week
[hfe_template id='11223']
[ad_1]
Asian share markets rose on Monday as investors looked forward to a rate cut in Europe, and quite possibly Canada, as the next step in global policy easing, though sticky inflation threatens to make the process a drawn out affair. The European Central Bank (ECB) is considered almost certain to trim rates by a quarter point to 3.75% on Thursday, the first time in history it would have eased ahead of the U.S. Federal Reserve. However, a surprisingly high reading for Euro zone inflationout last week blunted hopes for a rapid round of reductions and markets have 55 basis points of easing priced in for this year. "The probability of back-to-back cuts now appears very low, putting the focus for a second move on September," said Bruce Kasman, head of economic research at JPMorgan. "We suspect President Christine Lagarde will signal that the direction of rates is downward next week, but the policy statement will emphasize that fu...