MILAN, May 3 — World stocks rose slightly today and US 10-year Treasury yields held near 3 per cent as investors prepared for the Federal Reserve’s biggest rate hike since 2000.
“Even though there’s room for stock markets to rally from oversold levels, in the long term the headwinds are too many, simply because the speed of the Fed’s rate hikes will drive equity and especially bond market movements,” he added. Hong Kong’s Hang Seng index was up 0.1 per cent and South Korea’s KOSPI declined 0.3 per cent. Australia’s S&P/ASX 200 index fell 0.4 per cent as the central bank raised rates and flagged more hikes ahead to contain inflation. Read full story
Around 250 basis points of rate hikes by the end of this year are already priced in by money markets, which some analysts say reduces the scope for hawkish surprises this week. IRPR