Global Markets React to U.S. Fed, BoE Rate Cuts Amid Corporate Earnings

European stocks dipped as the U.K.'s Bank of England cut rates and the U.S. Federal Reserve hinted at future cuts. U.S. tech stocks rallied on strong earnings, while the Japanese yen surged. Commodity prices rose amidst Middle East tensions, leading to a surge in oil prices.

Major European equity markets were lower on Thursday following a series of corporate earnings in the U.S. and Europe. A rate cut in the UK and potential U.S. policy easing boosted global bonds. The Federal Reserve held interest rates steady but hinted at a September cut. The Bank of England lowered borrowing costs, with major European markets like Germany's DAX and France's CAC 40 experiencing losses. Britain's FTSE 100 benefited from a weaker pound due to the BoE's rate cut.

In the U.S., Nasdaq futures gained as Meta Platforms surged on strong earnings. Apple and Amazon were set to report earnings later. Asian markets saw mixed results, with Taiwan's shares surging, while Japan's Nikkei tumbled due to a stronger yen.

The Fed's potential September cut remains in focus, with markets pricing in a total easing of 72 basis points for 2024. Oil prices rose following tensions in the Middle East, and the dollar index rebounded after falling on Wednesday. Commodity prices saw movements with Brent crude and U.S. crude increasing, while gold prices dipped.

(With inputs from agencies.)