Global Markets Soar as Central Banks Cut Rates Amid Political Turmoil

Global stock markets hit record highs as the Federal Reserve and Bank of England cut interest rates. Investor optimism was bolstered by a potential second Trump presidency and corporate tax cuts. European and Asian shares surged, and central banks in Norway and Sweden maintained stability amid political changes in Germany.


Devdiscourse News Desk | Updated: 08-11-2024 03:34 IST | Created: 08-11-2024 03:34 IST
Global Markets Soar as Central Banks Cut Rates Amid Political Turmoil
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Global stock markets surged on Thursday after central banks, including the Federal Reserve and the Bank of England, reduced interest rates, sparking investor optimism. Wall Street shares reached new records, with the S&P 500 and Nasdaq achieving all-time highs for a second consecutive day.

U.S. Treasury yields retreated following the Fed's rate cut, and while some anticipated continuous rate drops during a possible second Trump presidency, others warned of unpredictability. Europe's STOXX 600 index also climbed, as did Asian stocks, with Chinese shares driving upward optimism.

Political developments in Germany, where an unexpected sacking in the government caused coalition turmoil, were seen by some analysts as potentially positive for the euro's stability. Meanwhile, the Bank of England hinted at gradual future rate cuts amidst rising inflation concerns.

(With inputs from agencies.)

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