Markets on Edge: Central Banks Signal Uncertainty Amid Global Challenges

Global markets dipped as major central banks maintained a rate cut stance, fueling investor caution amid trade war concerns. Despite the Fed's unchanged rates, projections of cuts soothed some fears. Gold hit new highs, while European and Asian markets saw mixed reactions to global economic uncertainties.

World markets faced a downturn on Thursday as various central banks, including the U.S. Federal Reserve, signaled that they remain in rate cut mode due to ongoing global uncertainties. This trend led to a roughly 1% decline in Europe's primary stock indexes, amid heightened worries over trade and actual geopolitical conflicts.

The dollar and safe-haven assets like government bonds saw gains, and gold achieved a record high overnight. In response to current economic conditions, Switzerland reduced its interest rates toward zero, while the Bank of England and Sweden maintained their borrowing costs. Wall Street futures showed a minor uptick following the Fed's commitment to potential rate cuts later this year.

In Asia, investor sentiment remained fragile despite the Fed's earlier positivity, with notable drops in both the Hang Seng and major Chinese tech stocks. The Middle Eastern tensions further affected commodity prices, causing a notable rise in oil futures following escalating conflicts between Israel and Hamas.

(With inputs from agencies.)