Global shares mostly rose on Thursday following the U.S. Federal Reserve's decision to maintain interest rates, marking the first time since September that rates were not cut in an effort to stimulate the economy. Some Asia-Pacific markets were closed for the Lunar New Year holiday, contributing to the mixed sentiment among investors.
Investor uncertainty persists regarding the U.S. economic outlook and the future policies of President Donald Trump's administration. In early trading, France's CAC 40 and Germany's DAX both saw gains of 0.3%, while Britain's FTSE 100 added 0.2%. U.S. shares were poised to rise, with Dow futures up 0.4% and S&P 500 futures up 0.5%.
Japan's Nikkei 225 index climbed 0.3%, and Australia's S&P/ASX 200 rose by 0.6%. SoftBank Group's stock dipped 1.1% amid reports of potential investment in OpenAI, while Nissan Motor's shares increased by 1.4% following the automaker's announcement of production cuts in the U.S.
The Fed's decision to maintain rates suggests a possible pause in rate adjustments after a rapid decline in 2024. Lower rates could stimulate borrowing for households and businesses but may also lead to increased inflation. Fed Chair Jerome Powell indicated that rate cuts could occur if inflation slows or job market conditions worsen.
Earlier in the week, disruptions were observed in the artificial intelligence sector after Chinese company DeepSeek claimed to have developed a more cost-effective large-language AI model. In energy trading, benchmark U.S. crude fell to $72.44 a barrel, while Brent crude dropped to $76.23 a barrel.
The U.S. dollar weakened against the Japanese yen, trading at 154.56 yen, and the euro saw a slight decline to $1.0420. Overall, market movements reflected a cautious optimism amid ongoing economic uncertainties.
