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Market Review

US:

Indices in the US ended with losses, even as the Federal Reserve cut the interest rate by 50 basis points.

Asia:

Asia-Pacific markets were mixed in choppy trading Thursday, as investors assessed the Federal Reserve's decision to cut interest rates by a half-percentage point.

India:

India's benchmark equity indices snapped two sessions of gains and ended lower on Wednesday amid caution as markets awaited the much-anticipated interest rate cut in the US. Market is expected to open on a gap up note and likely to witness positive move during the day.

Global economy:

China Development Bank Financial Leasing said its aircraft leasing unit would order 50 Boeing 737 MAX 8 jets, in a boost to the planemaker that has been grappling with a slowdown in Chinese orders and a strike by factory workers. Publicly disclosed Boeing plane purchases by Chinese customers had slowed significantly since Sino-U.S. trade relations deteriorated in 2018 and the manufacturer dealt with a lengthy return to service for the MAX in China after two deadly crashes. The order for 50 MAX jets is the largest by a Chinese customer since China Southern Airlines ordered the same number of MAX planes in 2015, according to data from Boeing's website. Boeing declined to comment. The planemaker's deliveries to China had been gradually recovering in recent months after a lengthy hiatus.

The Hong Kong Monetary Authority (HKMA) on Thursday cut its base rate charged via the overnight discount window by 50 basis points to 5.25%, tracking a move by the U.S. Federal Reserve. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar. HKMA said the U.S. interest rate cut will have a positive impact on the economy of the Asia financial centre and will provide some room for easing of local intereset rates. In Hong Kong, our financial and monetary markets have continued to operate in a smooth and orderly manner.

Commodities:

Oil prices fell in Asian trading on Thursday after a larger-than-expected Federal Reserve interest rate cut sparked concerns about the U.S. economy.

Gold prices remained steady on Thursday as investors assessed Federal Reserve Chair Jerome Powell's remarks following a significant rate cut by the U.S. central bank.

Currency:

The U.S. dollar rose broadly on Thursday after the Federal Reserve's significant interest rate cut. Despite initial volatility, the dollar rebounded from a one-year low against a basket of currencies.

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