New heights were recorded in stock markets around the world on Tuesday, when the impact of the recent interest rate cuts by the US Federal Reserve clearly showed the impact of investors. This rate of fed indicates global investors that monetary policy is being made more generous to support the US economy.

Japan’s Nikkei and Hong Kong’s Hangseng index closed with a strong lead in Asian markets. Germany’s Dax in Europe and France’s Cack 40 also reached record levels. At the same time, Dow Jones and S&P 500 also recorded a historic lead in American stock markets.

The dollar index also showed a strong jump and maintained stable strength against the major currencies. Analysts believe that the dollar’s attraction capacity has increased due to interest rate cuts, as the US markets have now become able to draw further investment.

There was also a stir in the bond market. American Treasury Yields declined, making the market more attractive to equity investors. At the same time, foreign capital flows are expected to increase in emerging economies.

However, experts have warned that relaxation in monetary policy may increase pressure on inflation. If the prices rise, the central banks may have to be strict once again.

Currently investors are considering it a positive signal for the market and there is a clear increase in the Risk Appetite globally.