Global Financial Markets Surge Amid Fed’s Rate Cut

Global financial markets experienced a significant uplift following the U.S. Federal Reserve's half-point interest rate cut. This move invigorated assets from stocks and metals to gold and oil. Concurrently, central banks globally adjusted their policies, influencing market reactions from Europe to Asia.

Global financial markets surged on Thursday, buoyed by a renewed risk appetite after the U.S. Federal Reserve initiated a long-anticipated interest rate cut of half a percentage point.

Europe's markets also gained despite the Bank of England opting against additional cuts, with Wall Street futures indicating further highs. The MSCI's 47-country world stocks index neared record levels, reflecting optimism about more rate cuts before year-end. Market sentiment was similarly optimistic in currency and commodities markets, bolstered by stronger expected demand.

The Federal Reserve's cut moved its benchmark policy rate to 4.75%-5%, lowering future rate expectations, though Fed Chair Jerome Powell urged measured interpretations. Bond markets in the U.S. and Europe adjusted accordingly, while Asian markets, led by Japan, saw substantial gains. Despite some isolated setbacks, such as in South Korean tech stocks, the overall global market picture remained bright.

(With inputs from agencies.)