World markets experienced fluctuations in Thursday trading following the Federal Reserve's decision to delay interest rate cuts, resulting in a mixed finish for U.S. stocks. Futures for the S&P 500 and Dow Jones Industrial Average indicated a positive opening, with gains of 0.5% and 0.4%, respectively.
European markets opened with mixed results, with London's FTSE 100 up 0.4%, Germany's DAX slightly lower, and the CAC 40 in Paris down 0.7%. In Asia, Tokyo's Nikkei 225 slipped 0.1%, while the Japanese yen initially surged but later reversed its gains against the U.S. dollar.
In South Korea, the Kospi declined by 0.3% as consumer prices rose at a slower pace in April. Hong Kong's Hang Seng index saw a notable increase of 2.4%, while markets in China remained closed for the Labor Day holiday. Australia's S&P/ASX 200 advanced by 0.2%.
On Wednesday, the S&P 500 fell 0.3% after the Fed decided to maintain its main interest rate at its highest level since 2001. The Dow Jones Industrial Average rose 0.2%, while the Nasdaq composite lost 0.3%. Federal Reserve Chair Jerome Powell expressed concerns about inflation not meeting the 2% target and hinted at a longer timeline for potential rate cuts.
Despite the cautious tone on interest rates, Powell reassured markets by suggesting that a rate hike is unlikely to be the next policy move. The Fed also announced a slowdown in reducing its holdings of Treasurys to provide stability in the bond market.
In energy trading, benchmark U.S. crude oil prices rose after three days of decline, reaching $79.58 a barrel. Brent crude, the international standard, also saw an increase to $84.13 a barrel. The euro strengthened against the dollar, trading at $1.0713.
