Russia's MOEX Index gained 0.96% to 2,165.54 points, and RTS Index rose 1.44% to 874.26, after the Central Bank's unexpected 25-basis-point interest rate cut to 14%, surprising market consensus expecting a pause.
The Trump administration will offer federal student loan borrowers a 1% interest rate reduction if they sign up for autopay, starting July 1. Borrowers have until Sept. 30 to enroll for the discount, which lasts until June 30, 2028.
Kevin Warsh has been sworn in as the new Chair of the US Federal Reserve (Fed). President Donald Trump expressed confidence in Warsh's ability to restore trust in the institution and focus on economic growth, while also reiterating his expectation of upcoming interest rate cuts.
Mainland Chinese investors reduced their holdings of US Treasury bills in March due to global market uncertainties, including the US-Israel war on Iran, which fueled inflation and energy price concerns, analysts said.
Oil prices dipped slightly as investors monitored the fragile ceasefire in the Iran conflict and awaited the Trump-Xi Jinping meeting, despite ongoing supply disruptions and elevated prices above $100/barrel.
US employers added a robust 115,000 jobs in April, surpassing expectations despite global economic uncertainty from the Iran conflict. The unemployment rate held steady at 4.3%. Healthcare and transportation sectors saw significant hiring, while manufacturing experienced job cuts. This resilient labor market suggests the Federal Reserve may hold off on interest rate cuts as inflation remains a concern.
Federal Reserve Chair Jerome Powell announced he will remain on the rate-setting board after his term ends May 15, citing ongoing investigations into Fed renovations. The Fed held interest rates unchanged for the third time this year, citing elevated inflation and slow job growth, despite continued pressure from Trump for rate cuts. The Senate banking committee confirmed Kevin Warsh as the next Fed chair, who is expected to be more amenable to Trump's rate cut demands.
China's central bank kept its benchmark lending rates unchanged for the 11th consecutive month, holding the one-year LPR at 3.0% and the five-year LPR at 3.5%. The decision comes as the world's second-largest economy posted 5% Q1 growth, factory-gate prices rose for the first time in over three years, and rising Middle East tensions push up oil prices, reducing pressure for additional stimulus.
