Stock exchanges in Europe commence trading on an uptrend,following a surge on Wall Street, contrasted by a decline in Asian markets.
The global stock market today saw a mixed performance on Friday, with some indices setting new highs, while others experienced declines. In the US, the S&P 500 and Wall Street hit all-time highs on Thursday, but the focus was on the Fed's interest rate cut and its implications. The Russell 2000 index of small stocks rallied 2.5% on Friday, setting an all-time high. This surge was not limited to the US, as Intel's shares soared by 22.77%, marking its best day since 1987. The S&P 500 was significantly influenced by Nvidia's performance, which climbed 3.49% on Friday, following Nvidia's purchase of $5 billion of Intel's stock as part of a collaboration to develop products for data centers and personal computers. However, not all markets followed this positive trend. Japan's Nikkei 225 closed at 45,045.81 on Friday, down 0.57%. Taiwan's Taiex opened at a level that resulted in a 0.74% decrease. South Korea's Kospi opened at 3,445.24 on Friday, down 0.46%. India's BSE Sensex opened at a level that resulted in a 0.53% decrease. In Europe, major stock indexes opened higher on Friday following major monetary policy decisions earlier in the week. The UK's FTSE 100 opened at 9,229.03, up 0.01%. Germany's DAX opened at 23,682.84, up 0.04%. France's CAC 40 opened at 7,884.10, up 0.38%. Italy's FTSE MIB opened at 42,414.35, up 0.25%. Spain's IBEX 35 opened at 15,234.60, up 0.39%. The Fed's decision to cut its key interest rate by 25 basis points this week has raised speculation about further cuts. The Fed indicated that more interest rate cuts may be on the way, which could boost stock markets further. In the bond market, Treasury yields climbed due to encouraging economic reports, with fewer US workers applying for unemployment benefits last week than expected, which could indicate a slowing pace of layoffs. Meanwhile, currencies saw fluctuations. The US dollar slid to 147.8210 on Friday, marking a decrease of less than 0.1%. The euro slipped to $1.18, resulting in a decrease of 0.1%. The yen held steady following the Bank of Japan's decision to keep interest rates unchanged. China's annual inflation in August slowed to a 10-month low at 2.7%, while Brent crude shed less than 0.1% to $66.90 per barrel. Hong Kong's Hang Seng index opened at 26,476.86 on Friday, up 0.26%. In conclusion, while some markets experienced growth, others saw declines. The Fed's interest rate cut and the ongoing collaboration between Intel and Nvidia were key factors influencing the US market, while currencies saw fluctuations. The overall market trend remains positive, with many investors optimistic about the future.
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