Global Markets Roiled by Fed’s Policy Shift for 2025
Global financial markets faced a wave of turbulence following the Federal Reserve’s announcement of a more measured monetary policy approach for 2025. Fed Chair Jerome Powell signaled plans for just two rate cuts next year, falling short of market expectations for four reductions.
The S&P 500 index shed 2.0% over the week, while the MSCI Emerging Markets Index dropped 3.2%.
In currency markets, the dollar strengthened against major counterparts, with the euro declining 0.7% to 1.04 EUR/USD.
Meanwhile, Ukraine’s central bank ramped up interventions in the interbank market to USD 1.4bn to meet heightened foreign currency demand. On the cash market, the dollar reached 42.15 UAH/USD. Since the beginning of the year, the National Bank has spent a whopping USD 32.8bn from reserves to support the hryvnia.
Ukrainian Stocks Follow Global Downturn
Among Ukrainian equities, Ferrexpo’s (FXPO) shares fell 2.5% to GBp 102, bringing its market capitalization to USD 773mn.
Astarta (AST) dropped 1.2% to PLN 40.00, with a market cap of USD 239mn and MHP (MHPC) shed 0.4% failing to climb above the resistance level of USD 5.00. The stock closed at USD 4.92 on Friday (Dec 20) with a MCap of USD 527mn.
POLITICS AND ECONOMICS
- Trump’s Plan to End Ukraine War Remains Unclear
FIXED INCOME
- Ukrainian Railways Ask to Delay USD 83mn Coupon Payments on Eurobonds
full reportThe National Bank of Ukraine has opened a special fundraising
account to support the Armed Forces of Ukraine. Please find more at the
National Bank’s official website under the link below:
www.bank.gov.ua
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