The stocks ended mixed in New York after the Federal Reserve rate cut on Wednesday. The Dow Jones ended up 0,31% to 27147 points, but the tech-heavy Nasdaq lost 0,11% to 8177 points.
The messages from the Fed were clear – the central bank is ready to act more if needed. The Fed also mentioned that the central bank will keep the reserves supply sufficient over time. The Fed Chairman Jerome Powell said that the global economic outlook is still uncertain due to trade talks with China and the Brexit-situation.
The markets are still expecting another rate cut for this year. On Thursday, the Bank of England and the Bank of Japan will also have their own meetings.
The negative rates are common for government bonds in Europe. For example the German 10 year bond was trading -0,51 % and the 10 year Dutch bond was -0,37 %. Bank of America Merrill Lynch senior analyst said in Bloomberg that US bonds may start to outperform Russel small cap. Much remain to be seen related to October and for example to the new trade talks with US China level.
The large S&P 500 index ended up 0,03 % to 3006 points while the Nyse closed down -0,09 % to 13 119 points. The Brent oil was trading down – 1,39% to 63 dollars after the highs due to the oil attacks in Saudi Arabia last weekend.