America News Agency

According to analysts, the UK’s FTSE Index is expected to open slightly below flat, Germany’s DAX Index down 0.3%, France’s CAC 40 Index flat, and Italy’s FTSE MIB Index down 0.18%.

Global markets are reacting to the Fed’s third interest rate cut of the year announced yesterday. The Fed lowered the federal funds rate by 25 basis points to the 3.5%–3.75% range, while signaling a more challenging path ahead.

Fed Chair Jerome Powell stated in a press conference following the meeting that the cut had put the Fed in a comfortable position regarding interest rates.

Powell said, “We are in a good position to wait and see how the economy evolves,” adding that President Donald Trump’s tariffs were fueling inflation. Powell is approaching the end of his second term as chair, with only three meetings left before handing over the role to Trump’s nominee.

Asia-Pacific markets erased earlier gains and traded mostly lower overnight. S&P and Nasdaq futures fell Wednesday night as Oracle’s earnings reignited concerns over high-flying tech stocks, despite the Fed’s rate cut boosting U.S. equities in the previous session.

Japan’s Nikkei 225 Index, which began the day positively, fell 0.58%, while the Topix Index declined 0.52%. South Korea’s Kospi Index reversed direction and fell 0.56% following the Fed’s rate decision, while the small-cap Kosdaq Index dropped 0.36%. Hong Kong’s Hang Seng Index rose 0.1%, while mainland China’s CSI 300 Index edged slightly lower.

Shares of Chinese telecom equipment maker ZTE Corp fell more than 5% following a Reuters report suggesting the company may need to pay more than $1 billion to the U.S. government to settle foreign bribery allegations. Australia’s S&P/ASX 200 Index traded flat.

There are no major earnings or economic data releases expected in Europe on Thursday. The Swiss National Bank will announce its latest monetary policy decision, but is widely expected to keep interest rates unchanged.