Bizbd Desk: March 22, 2024: Global stock markets were sharply higher Thursday as several central banks indicated lower interest rates are on the way.

The Federal Reserve said Wednesday it saw three cuts to US borrowing costs in 2024 after voting to hold interest rates at a 23-year high.

On Thursday, the central banks of England and Norway similarly held rates steady but suggested they could soon cut should inflation continue to ease.

And the Swiss National Bank (SNB) on Thursday became the first major central bank to cut rates since the end of a global tightening cycle, claiming the battle against inflation was working.

‘Investors overall reacted positively to the unexpected dovishness expressed by the Fed,’ said David Morrison, analyst at Trade Nation. ‘Market expectations, as illustrated by the CME’s FedWatch Tool, show an increased probability of a 25 basis point rate cut at the June meeting.’

All the main Wall Street rose at the opening Thursday after hitting record highs late Wednesday after the Fed’s announcements. Frankfurt and Paris reached new all-time peaks before pulling back somewhat.

Gold hit a fresh record of $2,220 an ounce as US rate cuts could weigh on the dollar. However, the dollar’s decline against the euro was limited by weak eurozone manufacturing data, which indicates the European Central Bank could match the Fed’s rate cuts.

The SNB’s announcement sent the Swiss franc sliding to multi-month lows against the dollar and euro.

Oil continued to slide on profit taking after earlier this week hitting a five-month high.