Global markets are showing a general resurgence of momentum on Thursday, buoyed by the Fed’s first rate cut since December and strong performances in key sectors, with European luxury goods and South Korean semiconductors leading the gains despite lingering caution about the future course of monetary policy.
This midday, the CAC 40 gained around 0.7% to reach 7,840 points, a sign that the market is welcoming the US Federal Reserve’s first rate cut since December.
In Europe, the STOXX 600 is up nearly 0.5%, but sector movements show that the room for maneuver is not the same everywhere. Groups such as Novo Nordisk are benefiting from favorable data, while others, such as SIG, are suffering from profit warnings.
Fed : a rate cut under certain conditions
On Wednesday evening, the Fed lowered its key interest rate by a quarter of a point, bringing it to a range of 4.00% to 4.25%. This move comes amid declining employment statistics and serious concerns about future economic risks. Chairman Powell described the decision as a “risk management” measure, emphasizing that the priority is not to rush into cuts, but to adapt them according to changing data.
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Read also > [STOCK MARKET UPDATE] Stock markets on hold : ECB and US inflation in the spotlight
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