Stocks rise amid global bond rally; yen advances

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The technology sector spurred a climb in stocks Friday and bonds held a rally as investors evaluated economic threats and scaled back expectations for inflation and interest-rate hikes. Moneyweb Stocks Yen

The technology sector spurred a climb in stocks Friday and bonds held a rally as investors evaluated economic threats and scaled back expectations for inflation and interest-rate hikes. An Asian equity index rose for a second day, aided by Chinese tech shares, while S&P 500 and European futures pushed higher. US shares closed near session highs Thursday, adding more than 3% in three days. Australian yields fell and US Treasuries held an advance.

One scenario comprises cooling price pressures and hence scope for central banks to ease up on the pace of interest-rate hikes. ‘Fraught transition’ Traders are starting to price out any Fed action on rates beyond the December meeting, scaling back the additional tightening they expect and flirting with the possibility of cuts by in 2023. Markets are negotiating “a fraught transition from ‘front-loaded’ synchronised tightening towards demand destruction and peak ‘price-pressure’,” Citigroup Inc.

 

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