In Asian Equity Markets stocks on Friday and were set for their first weekly gain in a month, as renewed hopes that China will relax its strict COVID measures spurred a rally in riskier assets. MSCI’s broadest index of Asia-Pacific shares outside Japan was 2.07 percent higher on the day. China’s blue-chip Shanghai Shenzhen CSI 300 index rose 2.7 percent, while the Shanghai Composite index jumped 2.1 percent, both trading around three-week highs. Hong Kong stocks were also caught up in the buying spree, with the Hang Seng index rallying nearly 5.5 percent.

In Currency Markets the dollar looked set to post its best week in over a month on Friday on expectations that U.S. rates could peak higher, while sterling was on the ropes as investors revised their rate projections after a shift in tone from the Bank of England. The dollar later reversed some of those gains in Asia trade on Friday, with the euro up 0.23 percent at $0.9772 and the kiwi gaining 0.51 percent to $0.5805. Sterling was up 0.50 percent at $1.1215, clawing back some of its losses from a 2 percent slide overnight. The Aussie was up 0.68 percent at $0.6331.

In US Equity Markets stocks fell on Thursday as economic data did little to alter expectations the Fed would continue raising interest rates for longer than previously thought. The Dow fell 0.46 percent, to 32,001.25, the S&P 500 lost 1.06 percent, to 3,719.89 and the Nasdaq Composite fell 1.73 percent, to 10,342.94. Qualcomm Inc and Roku Inc shed 7.66 percent and 4.57 percent, respectively, after their holiday quarter forecasts fell below expectations. Losses were curbed on the Dow thanks to gains in industrials including Boeing Co, which rose 6.34 percent, and a 2.20 percent climb in heavy equipment maker Caterpillar Inc.

In Commodities Markets oil prices slid about 2 percent on Thursday as China stood by its zero-COVID policy and an increase in U.S. interest rates pushed up the dollar, raising fears of a global recession that would crimp fuel demand. Brent futures were down 1.5 percent, to settle at $94.67 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 2.0 percent, to settle at $88.17. Spot gold was down 0.3 percent at $1,629.97 per ounce. Spot silver rose 0.9 percent to $19.45 per ounce, platinum fell 0.5 percent to $925 while palladium fell 2.4 percent to $1,811.15.

In European Equity Markets stocks hit one-week lows on Thursday after the Federal Reserve hinted at continued interest rate hikes going forward, dampening hopes of a downshift in its aggressive fight against inflation. The pan-European STOXX 600 fell 0.9 percent, logging its worst single-day performance in four weeks with rate-sensitive technology and real-estate stocks shedding 2.3 percent and 2.9 percent, respectively. BMW lost 4.7 percent as the German premium carmaker warned that rising inflation and interest rates would start to weigh on sales in coming months.

In Bond Markets treasury yields jumped on Thursday, with the two-year note climbing toward 5 percent, a day after Federal Reserve Chairman Jerome Powell said the “ultimate level” of the U.S. central bank’s policy rate would likely be higher than previously estimated. The yield on the benchmark 10-year note rose 9 basis points to 4.151 percent, while the two-year yield, which typically moves in step with interest rate expectations, was up 13.3 basis points at 4.703 percent. The yield on the 30-year Treasury bond was up 5 basis points to 4.174 percent.