Us federal reserve cut interest rate: The threat of recession in the US is continuously increasing, so the central bank US Federal Reserve has taken a big step. The Federal Reserve on Wednesday approved a cut of 25 basis points in interest rates. That is, taking loans in America will be a little cheaper than before.

The Federal Reserve has indicated that by the end of this year it can cut the interest rates twice. Actually, there are serious concerns about the labor market in America. The speed of new jobs has slowed down and there is a danger of growing unemployment. In such a situation, the government wants to promote investment and consumption by cutting interest rates.

What will be the effect?

EMI of debt and home loan may decrease, which will increase people’s spending ability. Foreign investors can turn to emerging markets again, which can lead to a boom in the stock market. The position of other currencies can be stronger against the dollar, and the prices of items like gold and oil will be seen fluctuations.

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Stock Market News: The US market has seen a boom. However, Gift Nifty indicated a starting to start with sluggish to sluggish weakness after overnight in the US markets. US President Donald Trump has announced that he will not remove the president of the Federal Reserve. Apart from this, in Wall Street, there is also a boom due to the expectations of reduced tariffs on China.

Earlier on Wednesday, the NSE Nifty-50, 182 points, increased to 0.67% to close at 24,329, while the BSE Sensex increased 521 points, or 0.65% to 80,117.

Asian Market

If we talk about Asian markets, then the American stock market has seen a boom due to positive signals. Japan’s Nikkei 225 saw an increase of 0.96 percent and it reached 35,204. However, South Korea’s Kopy has declined by 0.55 percent and fell to 2,511.83. While the Hangcand’s Hengseng Index traded at 22,072. China’s index was trading at Shanghai Composite 3,296.

American market

The US stock market is in positive expectation from the signs of decreasing business tension between American and China. Apart from this, President Trump has said that he has no intention of removing Federal Chief Jerome Powell. After its positive trend, Dow Jones Industrial Average climbed 419.59 points i.e. 1.07 percent to 39,606.57.

The S&P 500 saw an increase of about 1.67 percent and it came to 5,375.86. While Nasdaq Composite rose 2.50 percent to close at 16,708.05.

US dollar

The US Dollar Index (DXY), which assesses the price of dollar compared to six foreign currency, declined by 0.11 percent on Thursday morning, it was at 99.77. The index decides whether the dollar is weak or strengthened compared to the major currency. In the currency of these six countries, British Pond, Euro, Swidish Krona, Japan’s Yen, Swiss Frank etc. On April 23, the rupee has declined by 0.25 percent and it reached 85.42.

Gold prices fall

Here, on Thursday, there has been a decline in the international market in the price of gold. The spot gold has fallen by 3 percent to $ 3281.6 an ounce. While the US Glod Future has come down by 3.7 percent and it is being sold at the rate of $ 3294.10 an ounce.

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