World markets digested the United States Federal Reserve’s decision to cut its key interest rate by 25 basis points, marking the first easing move of 2025. Fed Chair Jerome Powell described the cut as a “risk management” measure, aimed at supporting growth while keeping inflation risks under control. The move reverberated across global markets, with Asian investors cautious ahead of U.S.-China political talks, European equities advancing after the Bank of England’s decision to pause cuts and hold its rate at 4%, and Gulf markets broadly following the Fed’s lead with parallel rate reductions. Emerging markets in Africa also posted mixed gains, supported by selective sector strength.
ASIA/PACIFIC
Asian stocks delivered a mixed performance on Thursday, with sentiment shaped by monetary policy signals and anticipation of Friday’s phone call between U.S. President Donald Trump and Chinese President Xi Jinping. Hong Kong’s Hang Seng fell 1.4% to 26,544.85 after China’s central bank kept its key interest rate unchanged. Japan’s Nikkei 225 climbed 1.15%, supported by gains in real estate and technology stocks, as the Bank of Japan began its two-day policy meeting, where rates are expected to remain steady. Australia’s S&P/ASX 200 dropped 0.8%, hitting a two-week low after disappointing August employment data.
EUROPE
Major European indices ended higher, with investor focus on the Bank of England’s decision to keep rates steady at 4%. Germany’s DAX gained 1.45%, boosted by a 5.33% surge in SAP SE after Goldman Sachs expanded its holdings by purchasing 80,164 shares. London’s FTSE 100 edged up 0.19%, while France’s CAC 40 rose 0.87%. The pan-European STOXX 600 closed 0.80% higher, tracking broad-based regional strength.
AMERICAS
U.S. equities extended their rally to fresh record highs, lifted by optimism in the technology sector and supportive economic data. Nvidia’s $5 billion investment in Intel fueled enthusiasm across chipmakers, while weekly jobless claims showed a further decline, underscoring the resilience of the labor market. The Nasdaq Composite advanced 0.9%, the S&P 500 climbed 0.5%, and the Dow Jones Industrial Average gained 0.3%, extending momentum from the Federal Reserve’s decision a day earlier to deliver its first rate cut since December 2024 and signal the prospect of two additional cuts this year.
AFRICA
African equities were broadly positive: South Africa’s FTSE/JSE All Share edged up 0.05%. Nigeria’s NGX ASI gained 0.16%. Egypt’s EGX30 surged 1.2%, led by a 7.4% rally in Eastern Company. The exchange also approved capital increases for Faisal Islamic Bank ($13.2m) and MM Group ($24m). At the 49th Annual Meeting of the Council of Arab Central Banks and Monetary Authorities’ Governors in Tunisia, Central Bank of Egypt Governor Hassan Abdalla stressed the need to boost domestic production as a tool against inflation.
MIDDLE EAST
Most Gulf markets largely mirrored the Fed’s rate cut, with most regional central banks trimming rates by 25 basis points to support growth. Saudi Arabia’s Tadawul advanced 1.2%, marking a third straight session of gains after the Saudi Central Bank aligned with the Fed. In the UAE, Abu Dhabi’s index rose 0.6%, while Dubai’s index slipped 0.2%, its third consecutive loss on broad sectoral weakness. Qatar’s benchmark added 0.7% after its central bank also reduced rates. Bahrain eased 0.1%, Oman inched up 0.1%, and Kuwait edged down 0.1%.