Globally, stocks have posted strong gains this year after a torrid 2022, based on expectations that inflation is close to peaking and the rise in U.S. interest rates will taper off. The dismantling of COVID controls in China and the re-opening of its borders have further boosted investor sentiment.
U.S. stock indexes closed mixed on Tuesday after companies warned of a tough year ahead along with some profit beats, while data showed U.S. business activity contracted for a troubling seventh straight month in January. The euro held near a nine-month peak against the dollar, as trades were encouraged by a rosier growth outlook for the euro zone against signs of a recession looming in the United States.Australian equity markets slipped 0.2 percent on Wednesday after a shock surge in inflation to a 33-year high last quarter added to the case for the Reserve Bank of Australia to keep raising interest rates.
The Kiwi however slid nearly 0.4 percent to $0.648 after New Zealand’s annual inflation of 7.2 percent in the fourth quarter came in below its central bank’s forecast of 7.5 percent .