Yesterday, the focus was on the G7 meeting, as well as the reduction of the US Federal Reserve's (Fed) leading interest rate by 50 basis points. The G7 meeting ended up having a relatively mixed interpretation in the financial markets since despite having announced that it would be willing to adopt expansionary measures, it had not however had any concrete measures. Shortly thereafter, however, it was possible to see the Fed lowering its interest rate and that this decision had a mixed impact on the stock markets as it also ended up sending out an "alarm" message.
In particular, the European benchmark index - Stoxx 600 - appreciated by 1.37%. The American index of Dow Jones fell by 2.94%, while the technological Nasdaq lost 2.99% and the S&P 500 depreciated by 2.81%.
With regards to European debt interest, a drop in yields in the major countries was observed. Also, the yield on 10-year US government bonds fell to less than 1% for the first time.
The European currency appreciated by 0.32% and that was also driven by the Fed's interest rate decline.
With regards to crude oil, it appreciated by 1.13%, having also had a mixed day. Once again, the mixed interpretation from the fall in US interest rates led to an equally mixed behavior in the price of the barrel.
The price of yellow metal rose sharply yesterday. The 3.01% appreciation is largely due to the drop in the Fed's leading interest rate.
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