US Federal Reserve cuts interest rate by 25 basis points

US Federal Reserve cut down interest rate by 25 basis points or 0.25%, yesterday. The Federal Funds rate now stands in the range of 3.5%-3.75%. Two members of the Federal Reserve board voted against the rate cut. One member voted for a 50 basis points rate cut.

Nasdaq ended the day yesterday, 10^th December, up by 77.67 points or 0.33%. Dow Jones ended the day, up by 497.46 points or 1.05%. S&P 500 ended, up by 46.17 points or 0.67%.

Euro Stoxx 50 ended the day, yesterday, down by 10.20 points or 0.18%. Dax ended the day, down by 32.51 points or 0.13%. FTSE 100 ended the day, up by 13.52 points or 0.14%.

Asian markets start the day on a mixed note

Nikkei is down in early trade today. At 8:50 a.m. IST, 11^th December, Nikkei 225 is down by 293.91 points or 0.58%. Tensions between Japan and China have increased over the Taiwan issue.  Hang Seng is up by 33.41 points or 0.13%. Shanghai Composite is down by 13.68 points or 0.35%. Kospi is down by 14.11 points or 0.34%.

Indian equity markets now wait for Indo US trade deal to be announced. A US trade team is in Delhi now to discuss the trade deal further. US has said that the terms offered by India in the current round of talks are better than those offered in the previous rounds. But there is still some resistance from the Indian side on the issue of row crops. Row crops include corn, wheat, maize etc.

After the interest rate cut by US Federal Reserve, the decline in rupee may get contained further, for the time being. This may help support the markets today.

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Source : Dow Jones