In Asian Equity Markets stocks jumped on Thursday, while the dollar slid as investors poured into risky assets after Federal Reserve Chair Jerome Powell opened the door to a slowdown in the pace of monetary tightening. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.65 percent. Over in China, China stocks rose nearly 1 percent and Hong Kong shares rose 1.6 percent as investors cheered signs of some relaxation in China’s strict anti-COVID curbs.
In Currency Markets the dollar tumbled to a three-month low against the yen on Thursday as traders focussed on comments by Federal Reserve Chair Jerome Powell that interest rate hikes could be scaled back “as soon as December”. The greenback was last down 1.32 percent at 136.295 yen. Sterling added 0.36 percent to $1.2102. The euro rose 0.39 percent to $1.04485, heading back toward the five-month high of $1.0497 marked at the start of this week. The Australian dollar last 0.55 percent stronger at $0.6826. New Zealand’s kiwi added 0.69 percent to $0.63405.
In US Equity Markets stocks ended sharply higher on Wednesday after Fed Chair Jerome Powell said the central bank might scale back the pace of its interest rate hikes as soon as December. The S&P 500 climbed 3.09 percent to end the session at 4,079.97 points. The Nasdaq gained 4.41 percent to 11,468.00 points, while Dow rose 2.18 percent to 34,589.24 points. The Philadelphia Semiconductor index rose 5.85 percent, trimming its loss in 2022 to about 28 percent. Biogen Inc jumped 4.7 percent after its experimental Alzheimer’s drug slowed cognitive decline in a closely watched trial.
In Commodities Markets oil prices settled up by over $2 per barrel on Wednesday on signs of tighter supply, a weaker dollar and optimism over a Chinese demand recovery. Brent crude futures settled up 2.8 percent to $85.43 per barrel while U.S. WTI crude futures settled up 3.01 percent, to $80.55. Spot gold rose 1 percent to $1,767.52 per ounce. In other metals, spot silver jumped 4.2 percent to $22.14 per ounce, on course for its best monthly gain since December 2020. Platinum gained 3.5 percent to $1,037.01. Palladium was up 3 percent at $1,889.25 after jumping to $1,933.04 earlier.
In European Equity Markets the STOXX 600 index closed higher on Wednesday and registered its second straight month of gains on hopes of easing COVID curbs in China and after cooler euro zone inflation data bolstered case for smaller rate hikes by the European Central Bank. The pan-European index rose 0.6 percent to end November with a 6.8 percent gain, its best monthly performance since July. Telecom Italia shed 5.2 percent after Italian cabinet undersecretary Alessio Butti said that the state had no plans to launch a full takeover bid for the former phone monopoly.
In Bond Markets U.S. Treasury yields retreated on Wednesday after trading higher for most of the session after Federal Reserve Chair Jerome Powell struck a more dovish tone than the market expected, saying the U.S. central bank could slow the pace of rate hikes as soon as next month. In afternoon trading, the yield on 10-year Treasury notes fell 6.1 basis points to 3.647 percent. The yield on the 30-year Treasury bond lost to 3.795 percent. U.S. five-year yields sank 10 bps to 3.821 percent, posting a monthly fall of 21.6 bps, the biggest decline since April 2020.