Dovish Fed rally pushes US stocks to new highs while UK markets stumble as UK budget deficit surges

UK budget deficit surges

“The UK’s August budget deficit surged to £18 billion, far above forecasts, sparking market concerns over fiscal sustainability, weakening sterling to its lowest in weeks, weighing on the UK stock market and pushing gilt yields higher amid fears of mounting inflation and limited policy flexibility. Meanwhile the three main US indices hit yet more record highs while France's industry confidence weakened slightly and China's foreign direct investment dropped 12.7% year-on-year in the first eight month of the year, amid global uncertainty."

US Dollar rises for third straight day

“Following the Fed's widely anticipated 25-basis point rate cut on Wednesday the US dollar has regained some of its recent losses and is on track for a third straight day of gains. Crude oil prices hardly changed while gold and silver rose. Meanwhile the price of Arabica coffee fell by around 3.75% to a one-month low as US law makers are said to prepare a bill to exempt the commodity from import tariffs."