World and Asian stocks crept higher on Monday despite an increase in U.S. and global bond yields, and ahead of an expected interest rate hike in Australia and hawkish remarks from Federal Reserve Chair Jerome Powell on Tuesday.
The gains were minimal, but they came despite a rise in global bond yields on Monday and significant event risk on Tuesday. Analysts expect one more 25 basis point increase in the second quarter of the year, leaving the cash rate at 3.85 per cent, its highest since 2012. If policymakers are to err on one side or the other, it will likely be on the hawkish side.
Again, the question is: how long can equity markets hold up and volatility stay depressed, if yields and Fed expectations continue to grind higher?
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Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
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