Global Markets:
- Asian Stock Markets : Nikkei up 2.15%, Shanghai Composite up 0.58%, Hang Seng up 1.82% ASX up 0.64%
- Commodities : Gold at $2592.35 (-0.24%), Silver at $30.90 (0.64%), Brent Oil at $73.78 (0.19%), WTI Oil at $69.9 (0.18%)
- Rates : US 10-year yield at 3.725, UK 10-year yield at 3.860, Germany 10-year yield at 2.190
News & Data:
- (USD) Federal Funds Rate 5.00% vs 5.25% expected
Markets Update:
Asia-Pacific markets experienced gains amid volatile trading on Thursday as investors reacted to the Federal Reserve’s half-percentage-point interest rate cut. Japan’s Nikkei 225 increased by 2.53%, and the Topix rose 2.41%. Meanwhile, the Japanese yen weakened by 0.68% against the U.S. dollar to 143.24. The Federal Reserve’s rate cut lowered its benchmark borrowing rate to a target range of 4.75% to 5%.
Following the Fed’s move, the Hong Kong Monetary Authority reduced its interest rate by 50 basis points to 5.25%, reflecting the city’s currency peg to the U.S. dollar. The Hang Seng index in Hong Kong climbed 1.81%, with China Vanke shares jumping 8.7%. Mainland China’s CSI 300 index went up by 0.8%, driven primarily by real estate stocks, which saw a 4.3% increase.
South Korea’s Kospi index inched up 0.11%, while the Kosdaq gained 0.65%. In Australia, the unemployment rate held steady at 4.2% in August, with employment figures surpassing expectations at 47,500 additions. This contributed to the S&P/ASX 200 rising by 0.64%, reaching a new record high.
New Zealand’s GDP for the second quarter contracted by 0.2%, which was better than the expected 0.4% decline. Taiwan’s central bank is preparing to announce a key rate decision, with the Taiwan Weighted Index up by 1.24%.
In the U.S., all major indices fell overnight. The Dow Jones decreased by 0.25%, the S&P 500 by 0.29%, and the Nasdaq by 0.31%, despite intraday highs.
Upcoming Events:
- 12:30 PM GMT – USD Unemployment Claims
- 02:00 PM GMT – USD Existing Home Sales
