Market Waves Amid Geopolitical Shifts

Global stocks faced declines following Federal Reserve Chair Jerome Powell's remarks on interest rates. However, European defense stocks rose sharply due to U.S. President Trump's comments on Ukraine. Investor focus shifted towards the U.S. economy and interest rate forecasts, with increased likelihood of rate cuts anticipated in October.

Global stocks experienced a downturn, shadowing overnight losses on Wall Street, as Federal Reserve Chair Jerome Powell avoided affirming a potential decrease in U.S. interest rates. In contrast, European defense stocks rose significantly after aspirations were raised by President Trump's statements regarding Ukraine's territorial integrity.

The geopolitical landscape, highlighted by Trump's address at the U.N. General Assembly, took a backseat to economic projections for the U.S., as investors closely monitored the Federal Reserve's monetary policy signals. The U.S. dollar appreciated, leaving other major currencies like the euro and yen in a weaker position.

Despite the anticipation of a rate cut in October, Powell's statements provided little additional guidance for market direction. Traders increased their expectations of further rate reductions, while long-term U.S. Treasury bonds performed steadily amidst the monetary policy uncertainties.

(With inputs from agencies.)