Stocks extended gains and the dollar edged lower as traders pared bets on an interest-rate hike after Federal Reserve Chair Kevin Warsh refrained from backing the case for tighter policy despite this week’s faster-than-expected inflation data. MSCI Inc.’s Asia Pacific equities gauge climbed 1.6%, while futures for the S&P 500 Index erased losses of as much as 0.6% to climb 0.2%. The modest uptick in sentiment — stocks were already higher as a rout in chip stocks eased — came after Warsh’s comments about the benefits of artificial intelligence to the US economy. He made no specific reference to monetary policy. “Warsh’s refusal to commit to another rate hike is resulting in some Fed-rate-hike bets being unwound,” said Charu Chanana, chief investment strategist at Saxo Markets. “His comment that ‘I don’t prejudge meetings’ after strong inflation prints is not helping the dollar.” Traders pared bets on a Fed rate hike by this month to 15% after Warsh’s speech from more than 25% on Thursday. A Bloomberg gauge of the dollar fell 0.1%, after dropping 0.3% Thursday, the biggest decline in more than a month. Gold rose 0.1% to about $4,175 an ounce. Treasuries stayed lower on the day as Warsh spoke, after rallying across the curve in US trading. Traders were looking to Warsh’s speech in Bangkok for more clarity on the path for rates after the fastest US inflation in five months prompted traders to ramp up bets on further Fed tightening. US inflation has remained stubborn, fueled by elevated oil prices since the Middle East war broke out. Warsh “doesn’t like forward guidance but in the past has talked about inflation being too high, whichever way the data was cut,” said Kristina Clifton, a senior strategist at Commonwealth Bank of Australia. “He didn’t repeat all that today.” Stock markets were already rising Friday before Warsh’s comments as a selloff in chip stocks eased. In Asia, Samsung Electronics Co. and SK Hynix Inc. both advanced more than 4%. That helped South Korea’s Kospi Index rise 4% rebounding from Thursday’s slump that sent the gauge to its lowest close since April. Indonesian stocks slumped as much as 11%, the most since January 1998, after MSCI said the country no longer merits emerging-market status. The rupiah also edged lower. The durability of the equity rebound may depend on whether gains spread beyond the technology heavyweights that have driven much of this year’s advance. Broader participation across sectors would help reduce the market’s reliance on AI-linked stocks after this week’s volatility exposed the risks of that concentration. US After Hours SMTC +3.2%, AA +1.0% higher on earnings; JBHT -1.8%, PRU -1.3% lower on earnings.
Nikkei +1.82% Hang Seng +0.97% CSI +0.01% Kospi +2.61% Shanghai +0.20% Shenzen +0.58%
Eur$ 1.125 CNH 6.6885 CNY 6.6900 JPY 157.89 GBP 1.3298 CHF 0.8273 RUB 83.7867 TRY 49.5247 WTI$ 97.36 -0.61% Gold 4,74.22 +0.63% BTC 82,142 +0.11% ETH 2,444 -0.30% US 10Y 5.087% BUND / OAT 138bps
S&P +0.16% Nasdaq +0.18% EuroStoxx +0.53% FTSE -0.04% Dax +0.47% SMI -0.12%
Macro :
- Britain’s Growth Has a Lot to Do With Weaning Off Fossil Fuels
- BOE’s Bailey Sees Little Evidence of Second-Round Inflation
- European Banks Face Bad Omen as JPMorgan, BofA Bond Trading Dips
- European Banks Face Bad Omen as JPMorgan, BofA Bond Trading Dips
- Order to Limit Starshield for Ukraine Was From White House: Rtrs
- Portugal’s Housing Protest Draws Thousands After Police Clashes
- Japan to Delay Specifying 3.5% Defense Spending Target: Asahi
- Trump Didn’t Order Limits on Kyiv’s SpaceX Access, US Says
- Taiwan to Curb AI Chip Exports to China as Part of US Trade Deal
Keep an eye on :
Keep an eye on :
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