Stocks Resume Rally With Slower Rate-Hike Bets: Markets Wrap

(Bloomberg) — Stocks advanced, with U.S. The dollar has stabilized after a two-day drop.

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An index of global shares is headed for a fifth day of gains, its longest stretch in more than two months, amid growing expectations of moderating U.S. inflation. it. Course hikes. A tech rally powered Hong Kong shares to further erode losses incurred earlier this week after President Xi Jinping tightened his grip on power. Japanese stocks led declines in Asia.

A Bloomberg gauge of the dollar is steady, with the offshore yuan giving up some of Wednesday’s gains. The yield on the 10-year Treasury bond sat around 4% after inching below the threshold earlier, with investors positioning for less aggressive rate hikes as earnings and economic data indicated a slowdown. The benchmark US

Among the challenges for investors, central banks provide some optimistic signals that less aggressive monetary tightening may be on the horizon. The Bank of Canada raised interest rates by a smaller amount than expected on Wednesday, adding to suggestions that the Federal Reserve is also closer to sending down the gears.

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A contraction in services and manufacturing and fewer new home sales showed the Fed’s efforts to cool the economy appear to be bearing some fruit. Still, economists expect the Fed to hike by 75 basis points for the fourth time in a row when it meets next week.

“The only reprieve that will cause them to pause will be signs that inflation is subsiding and we’re not quite there,” said Nancy Dowd, a private wealth adviser at Ameriprise Financial, in an interview on Bloomberg TV. “They will stick to their guns and raise rates in November and again in December.”

The European Central Bank is also projected to hike by 75 basis points later Thursday.

US it. Futures climbed, overcoming a 24% decline for Meta Platforms Inc. In after-hours trading after underwhelming third quarter earnings. Wednesday’s declines for Facebook parent Inc., Alphabet Inc. and Microsoft Inc. Dragged the S&P 500 to a loss as investors grew restless over tech profits. South Korea’s Samsung Electronics Co. was little changed after reporting weak earnings.

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China’s mainland stock indexes were little changed, while Australian equities rose.

Oil continued to gain after touching its highest level in about two weeks after US Secretary of State Anthony Blinken said a deal with Iran was unlikely to happen in the short term. Traders are placing bets on a soaring price for aluminum as the U.S. it. Consider adding the metal to sanctions against Russia, a major producer.

Read more: Stock fissures widen on day of severe moves below market surface

Key events this week:

  • ECB rate decision, Thursday

  • GDP, durable goods orders, initial jobless claims, Thursday

  • Bank of Japan policy decision, Friday

  • Personal income, personal spending, pending home sales, University of Michigan consumer sentiment, Friday

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Some of the major moves in markets:


  • Futures on the S&P 500 rose 0.5% as of 10:45 a.m. Tokyo time. The S&P 500 fell 0.7%

  • Nasdaq 100 futures climbed 0.5%. The Nasdaq 100 fell 2.3%

  • The TOPICS index fell 0.4%

  • The S&P/ASX 200 index rose 0.7%

  • The Hang Seng index rose 2.8%

  • The Shanghai Composite Index rose 0.3%

  • Euro Stoxx 50 futures fell 0.4%


  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0077

  • The Japanese yen rose 0.2% to 146.07 per dollar

  • The offshore yuan was little changed at 7.1932 per dollar


  • Bitcoin was little changed at $20,739.65

  • Ether rose 0.4% to $1,560.32



  • West Texas Intermediate crude rose 0.4% to $88.26 a barrel

  • Spot gold rose 0.2% to $1,667.69 an ounce

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