The Fed Pivots.What's Next?

Discover the latest trends in our monthly Investment Note for September 2024 from Lighthouse Canton, titled "The FED Pivots. What's Next"‍

• The much-awaited Fed rate cut has arrived at last:

  The Federal Open Market Committee (FOMC) delivered a 50-bps rate cut on 18th Sep’24. The Fed dot plot chart hinted at an additional 50bps rate cut in CY’24 and a 100 bps cut in CY’25.

• US unemployment rises; Non-farm Payrolls expand, though less than expectations:

  The Fed chair Jerome Powell reiterated his stance on the US economy being resilient in his speech after the decision.

• Gold Prices continue upward trajectory; Gold-silver ratio peaks:

  Gold ended August up 1.5% and is currently trading up around 2.6% for September (as of 19th Sep’24), having breached the $2600/oz handle in the process.

• India’s GDP emerged weaker; CPI flattens:

  The

  Indian economy’s Q1FY’25 GDP growth was recorded at 6.7%, marking a five-quarter low. India’s CPI rose a tag higher to 3.65%.

• India’s Q1FY25 Earnings muted but broadly in line:

  Aggregate revenues/ EBITDA/ PAT growth for Nifty companies came in at 7%/ 5%/ 4% YoY versus the market estimate of 6%/ 4%/ 3% YoY growth.‍

Check our report below to gain key insights about the same