Fed stated that interest rate cut pricing is 'overly optimistic'

Risk appetite in the markets remains low after Goldman Sachs stated that the market is overly optimistic regarding Fed interest rate cuts.

The S&P 500 closed Monday with a 0.5 percent loss after reaching its March 2022 peaks. The decline in US stock futures continues this morning. The losses have also spread to Asia. The MSCI Asia Pacific index is preparing to close its third consecutive trading day with a loss. Hong Kong's Hang Seng and Japan's Nikkei 225 are leading the losses in Asia.

The Bloomberg Dollar Index is flat at 1,240 points. The Australian dollar is decoupling negatively with a 0.6 percent loss following dovish statements regarding inflation from the Reserve Bank of Australia, which kept interest rates steady at 4.35 percent. The US 10-year bond yield is hovering flat at 4.26 percent. Statements from the Saudi prince have not provided support to oil prices for now. After closing Monday with a drop of over 2 percent following damage to optimism regarding Fed interest rate cuts, an ounce of gold is up 0.3 percent at the 2,036 dollar level.

GROUND OPERATION IN GAZA EXPANDS

Israel announced that it is expanding its ground operations in the Gaza Strip toward the south of the strip. Israel Defense Forces spokesperson Daniel Hagari stated in a statement on Monday that the attack is progressing "house by house, tunnel by tunnel." In his statement, which did not refer to US warnings regarding civilian casualties, Hagari merely said that the targets were based on "precise intelligence." On the other hand, a warning came from Turkey after Ronen Bar, the director of the Israeli Security Agency, said they were determined to kill Hamas members all over the world, including in Lebanon, Turkey, and Qatar. According to Anadolu Agency, it was reported to Israeli intelligence units that there would be serious consequences for engaging in illegal activities in Turkey.

News Source: 12punto