Institutions: The gloom behind the rate cut, global stock markets suffer Black Friday

On August 2, Jinshi data, AJ Bell’s investment director, Mos Mold, said that investors originally thought that the interest rate cut would boost the stock market, but the actual situation is the opposite. Weak US economic data has made the market panic. The UK lowered the Benchmark Intrerest Rate this week, and the United States also seems to be prepared to cut interest rates. However, investors have been reminded that the interest rate cut may be due to negative reasons, not just because of the decline in inflation. Against the backdrop of weak US economic data, the view has changed—from the interest rate cut being seen as Favourable Information to the interest rate cut meaning avoiding recession. A US economic recession will have far-reaching effects, which weighed on global stock markets on Friday.