LONDON — Stocks and the dollar nudged higher on Thursday after the US Federal Reserve’s first interest rate cut of the year, while French politics kept its markets jittery and the pound held its ground ahead of a Bank of England rate decision.
The Fed’s steady-as-she-goes-message from what had been a politically charged meeting lifted both the pan-European STOXX 600 and Wall Street futures 0.5 percent, despite an initially mixed reaction from US traders on Wednesday.
Asia had rallied overnight too. Chinese stocks hit a 10-year high as local chipmakers cheered reports of US giant Nvidia being banned there, while South Korea, Taiwan and Japan’s Nikkei all ended more than 1 percent higher.
There may have also been an element of relief to see the dollar nearly 0.2 percent higher in the currency market following a plunge to a 3-1/2-year low this week that has left non-US exporting firms grinding their teeth.
The Fed’s closely watched “dot plot” had pointed to two more rate cuts over its remaining two meetings this year, but only one additional reduction in 2026.
Fed Chair Jerome Powell had also tempered expectations, saying the central bank did not need to move quickly from here, although analysts acknowledge that could easily change.
