The easing tide has swept through most of the world’s long-term stock markets, foreign exchange markets, and commodities.
The wave of interest rate cuts swept the global stock markets, foreign exchange markets, and commodities. The “Super Thursday” dust settled. In the face of global economic uncertainty, it continued to expand interest rates one after another.
The Fed chose to cut interest rates again by 25 basis points and suggested more easing. Indonesia has cut interest rates by 25 basis points for the third consecutive month, and Brazil has gradually lowered another 50 basis points.
The Bank of Japan and the Bank of England kept their current interest rates unchanged.
Under the tide of interest rate cuts, global stock markets, foreign exchange markets, and commodity markets have been moving.
What’s the point of the Fed’s interest rate meeting?
As the starting point for the world ‘s most influential, the Federal Reserve announced on Thursday at two in the morning that it lowered the federal funds rate target range by 25 basis points to 1.
00%, while reducing the overnight reverse repo rate by 30 basis points to 1.
7%, cut the excess reserve interest rate by 30 basis points to 1.
What disturbs the market is that the Fed did not specify a clear reason for the rate cut this time.
Fed Chairman Powell said that the current US economic growth is stable and the labor market is performing strongly, but the global economic growth trend and the uncertainty of the trade pattern still pose certain downside risks to the US economy.
Powell also said that the Fed will focus on major economic data and will not rule out more interest rate cuts when the economy is down, but not now.
In addition, he revealed that the expansion of the balance sheet may be earlier than expected.
Huang Jun, the chief Chinese analyst of Jiasheng Group, told the Shanghai Stock Exchange that the Fed’s interest rate cut this time is more a response to sudden economic conditions than the worsening of the US economy.
From a cyclical point of view, he believes that the current Federal Reserve monetary policy is still a neutral stage after the rate hike cycle.
Pioneer Group senior economist Andrew Patterson also holds a similar view. He believes that the Fed’s downgrade is a preventive rate cut and expects the Fed to keep the current interest rate unchanged during the year.
”In the long run, the US economy does have a risk of recession, but it has not been fully exposed in the short term.
As a precautionary rate cut, the Fed may not be as dovish as the market expected.
Huang Jun said that in order to prevent the space for future monetary policy adjustment to become smaller and smaller, 北京夜生活网 it is necessary for the Fed to change the current way of rate cuts.
He believes that unless the U.S. economy has sudden and large risks, it will be difficult for the Fed to cut interest rates again this year.
The wave of easing swept across most parts of the world. In order to better cope with the downside risks of the global economy, since the beginning of this year, a number of consecutive sacrifices have been made.
After the Fed announced interest rate cuts on Thursday, the wave of easing once again swept through multiple global segments.
Brazil extended its announcement of a 50 basis point cut on the 18th local time, cutting the benchmark interest rate from the current 6% to 5.
5%, in line with expectations.
Market participants predict that the highest expected rate will be lowered to 5% during the year, which 南宁桑拿 is the second consecutive rate cut implemented by Brazil since the beginning of each year.
The Indonesian benchmark cut the benchmark interest rate by 25 basis points to 5.
50%, this is the third interest rate cut in three months in Indonesia.
In addition, Saudi Arabia, Jordan, the United Arab Emirates and other countries have previously announced follow-up interest rate cuts.
In the Chinese market, the Hong Kong Monetary Authority and the Macau Monetary Authority simultaneously reduced the basic interest rate of the discount window by 25 basis points to 2.
Zhang Jun, chief economist of Morgan Stanley Huaxin Securities, told the Shanghai Stock Exchange that the current monetary policy direction of major global economies, including those in emerging markets, is to cut interest rates and believes that early rate cuts are better than late rate cuts.
Because passive interest rate cuts mean that monetary policy is only a hedge against downward pressure on the economy, but choosing to cut interest rates first before the downward pressure on the economy becomes apparent can bring benefits to economic development.
Therefore, although the emerging economies are operating reasonably as a whole, Zhang Jun believes that they will take measures in advance because of the global economic downside risk breakthrough.
The Bank of Japan and the Bank of England chose to keep their current interest rates unchanged.
However, market participants predict that Japan is likely to adopt a loose policy in the future budget, while Britain’s prolonged attitude needs to observe the actual impact of “Brexit”.
The stock market, foreign exchange market, and commodity turmoil caused the US Federal Reserve to redefine a clear policy outlook. The three major U.S. stock indexes fell intraday, the Dow once fell more than 200 points, the Nasdaq once fell nearly 100 points, and the S & P 500 index also fell nearly 1%.
But then the decline narrowed, eventually closing, the three major stock indexes were mixed. The Asia-Pacific market also mixed on Thursday.
Benchmark stock indexes in Japan, South Korea and Australia rose slightly, while benchmark stock indexes in Thailand, Malaysia and other places fell slightly.
The European market performed well. As of 17:26 on the 19th, the benchmark index of the British, German and French stock markets rose by zero.
25% to 0.
The US dollar index actually rose by nearly 40 points after the announcement of the Fed’s decision. It believed that the US dollar index against the six major currencies rose 0 on the 18th.
31% in the forex market closed at 98.
However, after the New York Fed injected more liquidity into the market, the dollar index fluctuated and fell. At 17:28 on the 19th, the index reported 98.
31, a decline of 0.
At the same time, the price of gold in New York fell by 0 in recent months.
63% at 1505.
5 USD / GBP.