In Asian Equity Markets stocks found some calm on Thursday following this week’s heavy China-driven losses although the dollar sat at a more than one-year high against major peers, upheld by lingering safe-haven demand and expectations for tighter U.S. monetary policy. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.06 percent, while the Nikkei lost 0.36 percent a day after Japan’s ruling party chose softly spoken consensus-builder Fumio Kishida as its new leader and the country’s new prime minister. Hong Kong stocks fell 1 percent, but these were largely balanced by a 1.1 percent rise in Australia.

In Currency Markets the dollar hovered near a one-year high versus major peers on Thursday, following a two-day surge amid expectations for a tapering of Federal Reserve stimulus from November and a possible interest rate hike in late 2022. The dollar index stood at 94.336, little changed from Wednesday. The dollar bought 111.86 yen, easing slightly after reaching 112.05 overnight, a level not seen since February 2020. The euro was little changed at $1.1602, holding near Wednesday’s 14-month low of $1.15895. The risk-sensitive Australian dollar rose 0.15 percent to $0.71855.

In US Equity Markets stocks ended firmer on Wednesday in a partial rebound from the previous day’s broad sell-off, with remarks from U.S. Federal Reserve Chairman Jerome Powell and the ongoing debt ceiling debate keeping a lid on gains. The Dow rose 0.26 percent, to 34,390.72; the S&P 500 gained 0.16 percent, at 4,359.46; and the Nasdaq Composite fell 0.24 percent, to 14,512.44. Boeing Co provided the biggest lift to the Dow following China’s aviation regulator’s successful 737 MAX test. The planemaker’s shares rose 3.2 percent.

In Commodities Markets oil prices fell on Wednesday, having broken through $80 a barrel for the first time in nearly three years the day before. U.S. crude oil futures settled at $74.83 per barrel, down 0.6 percent. Brent crude futures settled at $78.64 per barrel, also down 0.6 percent. Spot gold was down 0.7 percent at $1,722.50 per ounce, after hitting its lowest since Aug. 10 at $1,720.49. U.S. gold futures settled 0.8 percent lower at $1,722.9. In other metals, silver fell 4.3 percent to $21.47 per ounce, platinum shed 2.3 percent to $944.88. Palladium fell 1.4 percent to $1,850.00.

In European Equity Markets stocks rose on Wednesday after one of the worst market routs this year as AstraZeneca lifted healthcare stocks on a deal to buy a rare disease drugmaker, while chip equipment producer ASM gained on an upbeat earnings forecast. British drugmaker AstraZeneca rose 4.2 percent after saying it will take full control of Caelum Biosciences in a deal worth up to $500 million. The pan-European STOXX 600 index rose 0.6 percent. ASM International rose almost 3.9 percent a day after it raised its third-quarter order intake guidance.

In Bond Markets traders slowed their selling of U.S. Treasuries on Wednesday, leaving yields little changed, as they kept an eye on government budget talks in Washington. The benchmark 10-year yield was up 1 basis point at 1.5462 percent while yields on shorter-term debt were lower. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down about a basis point at 0.299 percent. The 10-year TIPS yield was at -0.833 percent and the breakeven inflation rate was at 2.396 percent.