Stocks rally and dollar drop on hopes Fed rates have peaked

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Stocks and oil prices rose while the dollar weakened Thursday as a much-needed burst of confidence flows across world markets after the Federal Reserve hinted it has come to the end of its long-running interest rate hiking cycle.

Asian traders picked up the baton from their Wall Street counterparts, who welcomed what was seen as a dovish stance by the central bank and its governor, while data suggesting its tightening measures were taking hold provided extra support.

"Some might take this as a sign that the bond market will continue to help them with this tightening cycle, which could support the argument that a peak in rates is in place," said OANDA's Edward Moya. All three main indexes rallied in New York, with the Nasdaq and S&P 500 up more than one percent as below-forecast jobs growth and manufacturing activity were cheered as a sign that the economy and labour market were slowing enough to drag on inflation.Hong Kong, Tokyo, Shanghai, Sydney, Singapore, Seoul, Taipei, Jakarta and Wellington were all sharply higher.

The prospect of a softer dollar and easier financial conditions for companies pushed up crude, which is priced in the greenback. The European Union hopes to see the Philippine government and Philippine companies move toward a greener economy, including mobilizing green investments especially among corporates.

 

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