RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Canada Stocks Steady as Markets Await Fed and BoC Decisions 
RBA Holds Rates but Warns of Rising Inflation Pressures 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
ECB’s surprising dovish taper announcement on Thursday triggered rally across European equity markets. The European indices remain on track for its best week since February, having reached its highest level in 11 months yesterday.
European equity indices have been sharply outperforming their US counterparts as the region’s banking sector extended rally to reach its highest level since January, largely driven by a post-referendum surge for Italian lenders.
On Friday, European bourses were consolidating the post-ECB rally. Minor-recovery attempts by the euro from the ECB-led slump weighed down on the exports-oriented stocks, and hence, undermined the sentiment around the region’s equities.
Germany's DAX 30 index was down -0.23 percent to 11,155 levels, while the UK's FTSE 100 index trades marginally higher at 6,941. Among the other indices, the French CAC 40 index gains +0.14 percent to 4,744 while the pan-European Euro Stoxx 50 index inches -0.14 percent lower at 3,184 points.
Meanwhile a brief correction is likely on Wall Street stocks as we head towards the FOMC decision due next week. Investors turn cautious after yesterday’s global equities rally, with Wall Street stocks at record high levels.
