European markets opened higher on Friday following the Federal Reserve's decision to cut interest rates once again in an effort to alleviate pressure on the U.S. economy. Germany's DAX slipped 0.1% to 19,362.32, while in Paris, the CAC 40 edged 0.1% lower to 7,417.13. Britain's FTSE 100 also fell 0.1% to 8,132.48. The futures for the S&P 500 and the Dow Jones Industrial Average remained virtually unchanged.
Markets in Hong Kong and Shanghai experienced mixed results as investors awaited potential economic stimulus measures from Beijing to boost the slowing Chinese economy. Hong Kong's Hang Seng fell 1.1% to 20,728.19, and the Shanghai Composite index dropped 0.5% to 3,452.30. Meanwhile, Japan's Nikkei 225 index gained 0.3% to 39,500.37.
Japanese automaker Nissan Motor Corp. saw its shares plummet by 6% after announcing plans to dismiss 9,000 workers and reduce global production capacity by 20% due to declining sales and rising costs. In South Korea, the Kospi shed 0.1% to 2,561.15, while Australia's S&P/ASX 200 gained 0.8% to 8,295.10.
The Federal Reserve's decision to lower interest rates by a quarter of a percentage point had been widely anticipated by investors, with the central bank signaling the likelihood of further cuts to support job market growth. However, uncertainties remain regarding the impact of President Trump's policies on the Fed's future plans, particularly in relation to potential inflationary pressures.
Fed Chair Jerome Powell emphasized that current interest-rate policies are not expected to change in the near term, regardless of the election outcome. The yield on the 10-year Treasury bond eased to 4.33% following the Fed's announcement. U.S. benchmark crude oil lost 89 cents to $71.47 per barrel, while Brent crude fell to $74.75 per barrel. The dollar also weakened against the Japanese yen and the euro.
