In commodities, precious and base metals such as copper should benefit from Fed rate cuts, and for the latter the demand outlook and a soft landing are key. Lower rates and a weaker dollar, reducing not just the opportunity cost of holding metals but also of buying them for those using other currencies, could fuel momentum.

We concluded that this was the right thing for the economy and the people we serve,” the Federal Reserve chair, Jerome Powell, said, referring to the central bank’s decision to cut interest rates by half a point.

The Fed's decision will lower borrowing costs from a 23-year high as the central bank pivots to shoring up economic growth.

Shifting the emphasis from inflation to the jobs market, Powell and colleagues - via his press conference and the Fed's updated economic and rate projections - signalled another 50 basis points of easing by yearend and a further 100bps in 2025.

The US stock market’s reaction to the Federal Reserve’s half-point interest rate cut suggests that all-time high fatigue is still in play.

Major stock indexes rose and the dollar dropped on Wednesday as traders digested a chunky interest rate cut from the Federal Reserve, which moved to lower borrowing costs in the world's largest economy for the first time in more than four years.