In Asian Equity Markets stocks rose on Wednesday as investors grew hopeful future global interest rate rises might become less aggressive amid early signs previous policy tightening was working to temper price pressures in some major world economies. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 2.3 percent, after U.S. stocks ended the previous session with gains. Australian shares were up 1.66 percent, while Japan’s Nikkei stock index climbed 0.39 percent. Hong Kong’s Hang Seng Index gained 5.38 percent, pushed higher by a 7 percent lift in tech stocks.
In Currency Markets the dollar steadied on Wednesday after a sharp rate rise in New Zealand poured cold water over hopes for a pause or slowdown in the U.S. Federal Reserve’s intentions for aggressive hikes. The kiwi leapt as much as 1.3 percent before falling back to barely above flat at $0.5741. The euro fell 0.2 percent to $0.9970. Sterling’s rally paused as it fell 0.3 percent to $1.1449. The dollar index, down about 4 percent since hitting a record high of 114.78 last week, steadied at 110.30. The yen held at 144.06 per dollar and the Australian dollar fell 0.2 percent to $0.6488.
In US Equity Markets the S&P 500 index posted its biggest single-day rally in two years on Tuesday after softer U.S. economic data and Australia’s smaller-than-expected interest rate hike stirred hope for less aggressive tightening by the Federal Reserve. The Dow rose 2.8 percent, to 30,316.32, the S&P 500 gained 3.06 percent, at 3,790.93 and the Nasdaq Composite added 3.34 percent, at 11,176.41. Rivian Automotive Inc jumped 13.8 percent after the electric-vehicle maker said it produced 7,363 units in the third quarter, 67 percent more than the preceding quarter, and maintained its full-year target of 25,000.
In Commodities Markets oil rose by nearly $3 a barrel on Tuesday on expectations of a large cut in crude output from the OPEC+ producer group and as a weaker U.S. dollar made oil purchases less expensive. Brent crude settled at $91.80 a barrel, up 3.3 percent. U.S. West Texas Intermediate (WTI) crude closed 3.5 percent, higher at $86.52 a barrel. Spot gold gained 1.5 percent to $1,723.99 per ounce, its highest since Sept. 13. Spot silver rose 1.2 percent to $21.01 per ounce. Platinum gained 2.8 percent to $928.00, and palladium climbed 3.9 percent to a five-month high of $2,306.71.
In European Equity Markets stocks rose sharply on Tuesday, in line with global peers, boosted by growing hopes that central banks may ease the pace of future interest rate hikes as they attempt to bring down high inflation. The region-wide STOXX 600 index climbed 3.1 percent, extending gains for a third straight day and logging its best session since mid-March. Tech stocks rose 5.1 percent, helped by gains in chipmakers, including ASML, STMicroelectronics and Infineon after the European Parliament approved rules to introduce a single charging port for mobile phones, tablets and cameras.
In Bond Markets the yield on the benchmark U.S. 10-year Treasury declined for a second straight day on Tuesday, after a surprise move by Australia’s central bank to slow its pace of rate hikes and U.S. data showed job openings fell in August. The yield on 10-year Treasury notes was down 3.2 basis points to 3.619 percent. The yield on the 30-year bond was down 2.2 basis points at 3.684 percent. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 0.6 basis points at 4.099 percent.