Asia And Europe Up, Crude And Gold Gain Following Fed's Rate Cut - Global Markets Today While US Slept

On Wednesday, September 18th, U.S. markets closed lower, with modest losses after the Federal Reserve cut interest rates by 50 basis points, its first cut in over four years. Despite initial gains, markets weakened, with the S&P 500 and Dow closing lower.

The Dow Jones Industrial Average was down 0.04% and closed at 41,606.18. The S&P 500 ended the day higher by 0.03% at 5,634.58, and the Nasdaq Composite rose 0.20%, finishing the session at 17,628.06.

Consumer staples, utilities, and tech stocks led losses on the S&P 500, while energy and communication services stocks defied the market trend, closing higher.

The U.S. Federal Reserve cut interest rates by 50 basis points to 4.75%-5%, its first cut in over four years, breaking a 12-month pause. Economic data showed U.S. housing starts rose 9.6% in August, and building permits climbed 4.9% to 1.475 million.

Asian Markets Today

• On Thursday, Japan’s Nikkei 225 closed the session higher by 2.15% at 37,120.50, led by gains in the Food, Fishery and Services sectors.
• Australia’s S&P/ASX 200 ended the day higher by 0.61% at 8,191.90, led by gains in the Materials, Metals & Mining and Resources sectors.
• India’s Nifty 50 was up 0.15% at 25,415.80, while Nifty 500 was down by 0.19% at 23,853.95.
• China’s Shanghai Composite closed higher by 0.69% at 2,736.02, and Shanghai Shenzhen CSI 300 was up 0.79% and ended the day at 3,196.04.  
• Hong Kong’s Hang Seng rose 2.00%, ending the day at 18,013.16.

Eurozone at 06:00 AM ET

• The European STOXX 50 index gained 1.69%.
• Germany’s DAX was up 1.39%.
• France’s CAC rose 1.90%.
• U.K.’s FTSE 100 index traded higher by 1.21%.
• European stocks rose after the U.S. Fed’s 50-basis-point rate cut, boosting hopes for a soft landing. Miners led gains, while real estate, tech, and banks also climbed.

Commodities at 06:00 AM ET

• Crude Oil WTI was trading higher by 1.09% at $70.64/bbl, and Brent was up 1.00% at $74.42/bbl.
• Oil prices rose following a large U.S. Federal Reserve rate cut, which typically boosts economic activity and energy demand. However, concerns about weaker global demand, particularly from China’s slowing economy, kept prices below $75.
• Natural Gas was up 1.18% at $2.311.
• Gold was trading higher by 0.64% at $2,615.20, Silver gained 2.69% to $31.515, and Copper rose 1.60% to $4.3678.

US Futures at 06:00 AM ET

Dow futures were up 1.10%, S&P 500 futures rose 1.51%, and Nasdaq 100 Futures gained 1.98%.

Forex at 06:00 AM ET

The U.S. Dollar Index fell 0.04% to 100.55, USD/JPY was up 0.49% at 142.96, and USD/AUD declined 1.02% to 1.4632.

Photo by Pavel Bobrovskiy via Shutterstock