In Asian Equity Markets a tech-fuelled global stocks rally cooled in Asian trade on Thursday as investors took a more cautious posture amid uncertainties around the outlook for inflation and interest rates. Japan’s blue-chip Nikkei started the day almost 1 percent higher before beginning a steady slide that took it close to negative territory. It later rebounded to be 0.33 percent higher. Meanwhile, Chinese blue chips sank 0.52 percent and Hong Kong’s Hang Seng retreated 0.31 percent. MSCI’s broadest index of Asia-Pacific shares eked a 0.10 percent gain.
In Currency Markets the Aussie and Kiwi dollars held recent gains to hover near multi-week highs on Thursday in line with investors’ recent turn towards riskier assets like equities, but currencies were little changed ahead of U.S. inflation data later in the day. The Australian dollar was last at $0.7174. The New Zealand dollar, which reached a two-week high of $0.66975 on Wednesday, was at $0.6682. The improved risk sentiment also weighed a little on the safe haven yen, which was at 115.61 per dollar, testing the weak end of its recent range. The dollar index was holding steady at 95.561.
In US Equity Markets stocks rose on Wednesday, closing sharply higher as megacap growth stocks powered up thanks to a pause in rising interest rates, and upbeat earnings reports also encouraged investors to buy. The Dow rose 0.86 percent to end at 35,768.06 points, while the S&P 500 gained 1.45 percent to 4,587.18. The Nasdaq Composite climbed 2.08 percent to 14,490.37. Chipotle Mexican Grill Inc rose 10 percent after beating profit and sales estimates, while KFC parent Yum Brands Inc rose 2.2 percent after sales beat estimates.
In Commodities Markets oil prices rallied on Wednesday after U.S. crude inventories fell by nearly 5 million barrels and fuel demand rose to an all-time high, underscoring the market’s ongoing tightness. Brent crude futures settled up 0.9 percent, to $91.55 a barrel. U.S. West Texas Intermediate crude ended up 30 cents to $89.66 a barrel. Spot gold rose 0.5 percent to $1,834.25 per ounce. Among other precious metals, silver rose 0.5 percent to $23.28 per ounce, platinum was up 0.4 percent at $1,036.02 and palladium climbed 1.7 percent to $2,286.01.
In European Equity Markets stocks rose on Wednesday to their biggest daily gain in two months, buoyed by a batch of strong fourth-quarter trading updates, while Volkswagen rose on the possible listing of its luxury brand Porsche AG. The pan-European STOXX 600 climbed 1.7 percent with automakers leading gains with a 4.0 percent jump. Volkswagen was among the top boosts to the index, up 6.1 percent, while its biggest investor, holding company Porsche SE jumped 8.2 percent. Amundi gained 3.9 percent after saying it exceeded its 2022 strategic targets and logging a strong rise in earnings.
In Bond Markets benchmark 10-year Treasury yields retreated from 27-month highs on Wednesday as the U.S. Treasury Department sold new 10-year notes to strong demand, and as investors waited on highly anticipated inflation data due on Thursday. The 10-year note yield rose to 1.970 percent on Tuesday, the highest since November 2019 when it hit an interim high of 1.973 percent. Yields have been rising as investors prepare for the likelihood that the Federal Reserve will hike rates more aggressively than previously expected as it tackles rising price pressures.