Investors favour tech stocks after Jerome Powell calms markets

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Testimony from US Federal Reserve chair Jerome Powell reassures traders that the central bank is in no hurry to increase rates

Foreign exchange traders monitor screens in Tokyo, Japan. Picture: GETTY IMAGES/CARL COURT

The Fed had knocked stocks and boosted the dollar last week with a surprise projection for rate increases as soon as 2023. AMP Capital chief economist Shane Oliver put it this way in a note to clients on Wednesday: “This is all a long way off as even the first hike is a while away.” The greenback was firm against most majors on Wednesday and last traded 0.1% higher at $1.1928 to the euro and was close to its highest for the year at ¥110.78.analysts said in a note.

Also on the horizon are speeches from Reserve Bank of Australia assistant governor Luci Ellis — the first from a central banker since stellar jobs data this month — and from European Central Bank president Christine Lagarde. Elsewhere, cryptocurrencies were licking their wounds after heavy selling drove bitcoin to its lowest since early January — though it has since recovered back above $30,000.

 

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