The GBPJPY pair touched the first additional target at 193.30 yesterday, followed by forming temporary negative rebound to settle near 192.20, affected by stochastic exit from the overbought areas.

Forming continuous additional support at 191.80 allows us to expect renewing the attempt to activate the bullish rally, to repeat the pressure on 193.30 level, while breaching it might target 194.15 and 194.90 levels direct, and crawling below the additional support might force it to postpone the positivity and suffer some losses by crawling towards 190.80 and 190.10 levels before any attempt to record the suggested positive targets.

The expected trading range for today is between 191.80 and 194.15

Trend forecast: Bullish

Lowering Interest Rates and Their Impact on Stocks

It is now clear that we have entered a new era marked by a series of consecutive interest rate cuts by the Federal Reserve, which is almost certain.

For the first time since March 2020, the federal funds rate has been lowered by 0.5%, double what many economists had anticipated. Interestingly, this isn't the end of the story.

The Federal Reserve is expected to continue cutting rates throughout this year and into 2025, with the federal funds rate predicted to drop to 3.4% by the end of next year.

But how might stocks react during such a period?

In theory, lower interest rates should boost stock prices, as lower borrowing costs allow companies to retain more profits from their sales.

Additionally, rate cuts enhance the appeal of stocks compared to bonds, as bond yields decrease when bond prices rise (bond yields move inversely to bond prices).

This article will highlight the best sectors and stocks that might benefit from rate cuts, with the likelihood of further reductions this year and into 2025.

In a low-interest-rate environment, certain stocks and sectors that have underperformed might start to outshine the large-cap tech stocks that have been investor favorites in recent years.

Real Estate and REITs (Real Estate Investment Trusts)

The real estate sector and REITs stand to benefit the most from lower interest rates in two ways: companies often expand by purchasing and developing real estate through loans, while individuals are incentivized to buy homes due to lower mortgage costs.

Some of the best stocks in this area include:

- D.R. Horton, Inc. (DHI)

- National Storage Affiliates Trust (NSA)

- Realty Income Corporation (O)

Consumer Goods and Discretionary Goods Sector

The consumer goods and discretionary goods sectors also benefit from lower interest rates, especially when it comes to big-ticket items like cars and luxury goods.

- General Motors Company (GM)

- Honda Motor Co., Ltd. (HMC)

Energy Sector

Lower interest rates can help boost economic growth and raise crude oil prices, making the energy sector one of the best options in this environment.

- Exxon Mobil Corporation (XOM)

- ConocoPhillips (COP)

Healthcare Sector

The healthcare sector also benefits from lower interest rates as hospitals and healthcare companies can finance expansion projects and purchase medical equipment at lower costs.

- UnitedHealth Group Incorporated (UNH)

Best Brokerage Platforms for Stocks Benefiting from Lower Interest Rates

• Pepperstone, best brokerage company for stocks benefiting from lower interest rates. Trusted for beginners. Dubai license. Minimum deposit: 0$. 20% discount on trading.
• XM, best platform for stocks benefiting from lower interest rates. Provides educational material and copy trading. Dubai license. Minimum deposit: 5$. Regular competitions and financial prizes.
• Plus500, best licensed brokerage company for stocks CFDs benefiting from lower interest rates. Dubai license. Minimum deposit: 100$.

Pepperstone

Licenses:

CySEC, BaFin, FCA, SCB, CMA

Minimum Deposit:

$0

Trade Now

XM

Licenses:

CySEC, ASIC, IFSC, DFSA, FCA

Minimum Deposit:

$5

Trade Now

Platinum price ended yesterday by providing new positive close above 983.00$ barrier, confirming its preparation to activate the bullish attack again, also, the major indicators provide the positive momentum to increase the chances of targeting 995.00$ level soon, while surpassing it will extend trades towards 61.8% Fibonacci correction level at 1015.00$ direct.

The expected trading range for today is between 975.00$ and 1015.00$

Trend forecast: Bullish

Copper price formed new bullish rally yesterday, to achieve the previously suggested initial targets by reaching 4.5170$, to confirm moving to the bullish track that depends on 4.3200$ formation to major support base.

Stochastic reach to the overbought areas might force the price to provide some sideways trades until gathering the required additional positive momentum to resume recording the gains, to expect targeting 4.6420$ level soon, followed by reaching the next target at 4.6400$.

The expected trading range for today is between 4.4100$ and 4.6400$

Trend forecast: Bullish