International Investing

In a move that suprised almost everyone the fed cut 75 basis points this morning. International stocks plummeted before the move, with China and India both down 10%+. DailyFX analyses the latest from the Fed:

The rumors in Europe were true. The Federal Reserve enacted an emergency rate cut this morning to slash the fed funds rate by 75bp to 3.50 percent. The US Dollar was knocked lower on the news, but the question is, will it prevent the US stock markets from plummeting? Dow futures are down 3.06 percent, which is better than the -5.11 percent readings we saw overnight, but nevertheless, after Asian stocks fell the most in 17 years and European shares trade nervously, it looks to be a rocky day in the US markets. Furthermore, if fed fund futures continue to price in another 50bp cut next week, the greenback will likely continue to tumble.