Global Stocks Stagnate, Dollar Hits 14-Month Low Amid Fed Rate Cut Bets

Global stock indexes saw marginal changes following a week of record highs. Simultaneously, the dollar dropped to a 14-month low against the euro, amid speculations of significant interest rate cuts by the Federal Reserve in its upcoming meeting. Investors are watching key economic indicators to gauge the market's next move.

Global stock indexes remained relatively unchanged on Wednesday after achieving record highs earlier this week. Meanwhile, the dollar plummeted to a 14-month low against the euro as traders speculated that the Federal Reserve would announce another substantial interest rate cut in its November meeting.

China's yuan retracted its previous gains a day after China's central bank implemented its most significant stimulus measure since the pandemic to revive the economy. The People's Bank of China reduced medium-term lending rates to banks to stimulate growth.

Expectations of a 50-basis point cut by the Fed at its forthcoming meeting soared to over 60%, up from 53% just a day prior, according to CME Group's FedWatch Tool. The drop in U.S. consumer confidence added to existing concerns about the labor market, further influencing market sentiment.

(With inputs from agencies.)