Stocks rally on Powell’s mild rates comments

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 63%

Ireland News News

Dollar weakens after Fed chair says prices have started to fall, while warning that the battle against inflation isn’t over

Shares jumped and most currencies rose against the dollar on Wednesday, as investors discerned a dovish tone in comments from Federal Reserve chair Jerome Powell, though a policy tweak by the ECB meant European bonds sat out the rally.

MSCI’s broadest index of Asia Pacific shares outside Japan rose 0.76%, though Japan’s Nikkei failed to join in the rally after disappointing results from big tech firms including Nintendo. “The market is looking for a dovish message where it can almost regardless. Powell said effectively the terminal rate could be higher than the market expects, but the Nasdaq and S&P 500 were up, though I think they’re wrong,” said Ben Jones, director of macro research at Invesco.

Powell’s avoidance of a more hawkish tone also gave a cue to currency markets, as the euro strengthened 0.23% against the dollar, and the pound gained 0.33%. However, bonds in Europe continued to sell off after tumbling the previous day when the European Central Bank said it would cut the interest rate it pays governments on deposits.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

International Finance: Asia stocks follow US shares higher, dollar steady: markets wrapStocks in Asia edged higher on Wednesday following a late rally in US shares in a volatile session after Federal Reserve chair Jerome Powell rebuffed an opportunity to tamp down investor optimism.
Source: dailymaverick - 🏆 3. / 84 Read more »

Asia stocks steady after day of steep lossesDollar strong as markets reassess rates outlook
Source: BDliveSA - 🏆 12. / 63 Read more »

MARKET WRAP: Rand at worst level in six weeks as dollar soarsThe JSE tracked global peers weaker as investors assessed the US Federal Reserve’s next move
Source: BDliveSA - 🏆 12. / 63 Read more »

International Finance: Asian stocks edge higher as investors await Powell: markets wrapUS and European equity futures and Asian stocks made small gains as investors awaited commentary from Federal Reserve chair Jerome Powell later on Tuesday.
Source: dailymaverick - 🏆 3. / 84 Read more »