Asian stocks rose to follow Wall Street higher after traders scaled back wagers on Federal Reserve rate hikes, with expectations of further China stimulus helping drive gains.
“Asian equities have got a double bonanza today from the less hawkish stance from the Fed members as well as speculation around a China stimulus,” said Charu Chanana, market strategist at Saxobank. “But Fed will have to stick with higher-for-longer if it wants to continue to see the markets do the job of rate hike, and there are also risks that geopolitical tensions could escalate.”
Ten-year Treasuries steadied after Tuesday’s gains when US government bond yields posted some of their biggest one-day declines all year. Fed swaps currently show more than 60% chance the Fed will stay on hold in December, compared with 60% odds on another hike by then, just a week ago. “Policymakers have begun to acknowledge a lesser need for further policy action given financial conditions have tightened considerably after the recent surge in Treasury yields,” said Ben Jeffery at BMO Capital Markets. “This acknowledgment may have reduced angst around the need for additional rate increases.”
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Moneyweb - 🏆 5. / 77 Read more »
Source: Moneyweb - 🏆 5. / 77 Read more »