LONDON: Equity markets across Europe and Asia surged on Thursday following a surprise decision by key central banks to lower interest rates earlier than analysts had predicted.
The move comes in response to cooling inflation data over the previous quarter, providing much-needed relief to investors and businesses worried about a potential economic slowdown.
Positive Sentiment Restored
"This is exactly the catalyst the market was waiting for," a portfolio manager stated. "The rate cuts provide a cushion for economic growth and heavily reduce borrowing costs for major corporations."
Trading volumes reached their highest levels in months, with tech and manufacturing stocks leading the broad-based rally. Experts predict the positive momentum could carry through to the end of the year if economic indicators remain stable.