Global Market Update –

Advisory Bazaar Info Services

* US equity markets closed higher, gaining between 0.36% and 1%.

* European markets ended on a flat to negative note.

* Most Asian markets are trading in positive territory today.

* Sensex–Nifty are showing gains of 15–10 points.

* The US Federal Reserve cut interest rates by 25 basis points after the two-day FOMC meeting. The new rate range now stands at 3.5%–3.75%. In its official statement, the FOMC said:

“In support of its goals and considering changes in the balance of risks, the Committee decided to reduce the target range for the federal funds rate by 1/4 percentage point to 3-1/2 to 3-3/4 percent.”

* Following the third consecutive rate cut, US bond yields declined and equities strengthened. Chair Jerome Powell also expressed confidence that the US economy will continue to strengthen, as the inflationary impact of tariffs is likely to be temporary.

* Asian markets are also trading in the green after the Fed rate cut and Powell’s positive commentary.

* Crude oil continues to rise. Concerns over supply increased after the US seized a sanctioned tanker near Venezuela, raising fears of escalating geopolitical tensions. Brent crude is trading above $62 per barrel.