The dollar and Treasury yields fell as investors adjusted positions ahead of the Federal Reserve’s policy meeting while Chinese technology stocks led a rebound in equities during the Asian trading session. A gauge of the region’s shares rallied for a second day, with large gains in Hong Kong-listed internet companies after the Hang Seng Index on Monday slumped to the lowest since 2009. Technology and EV battery companies pushed South Korea’s benchmark index higher.
US equity futures advanced after the S&P 500 declined, weighed down by big tech. US energy shares had whipsawed on news that President Joe Biden would call on Congress to consider tax penalties for producers accruing record profits. While Treasury yields slid, they remained elevated. Swap markets are pricing in a 75-basis-point hike this week amid the Fed’s most-aggressive tightening campaign in four decades. The strong rebound in Chinese stocks likely reflected some bottom fishing, Strategists including JPMorgan Chase & Co.’s Marko Kolanovic believe the Fed’s aggressive hiking is nearing an end, providing the prospect of relief for markets. The US will likely raise rates by 50 basis points in December and pause after one more 25-basis-point hike in the first quarter, he said. Indicators such as the inversion of the yield curve between 10-year and three-month Treasuries “all support a Fed pivot sooner rather than later,” wrote Morgan Stanley’s Michael Wilson. The yen strengthened slightly while remaining within reach of the 150 level versus the dollar. Japan spent a record 6.3 trillion yen ($42 billion) in October to counter the yen’s sharp slide against the dollar, as it tried to limit speculative moves adding to pressure on the currency. oil climbed above $87 a barrel after losing around 3% over the previous two sessions. Gold rose.
Nikkei +0.33% Hang Seng +5.24% CSI +3.05% Shanghai +2.12% Shenzen +2.45%
Eur$ 0.9928 CNH 7.2941 CNY 7.2830 JPY 147.93 GBP 1.1539 CHF 0.9985 RUB 61.9275 TRY 18.6187 WTI$ 87.75 +1.41% Gold 1,644.75 +0.68% BTC 20,625 +1.05% ETH 1,,595.61 +1.96%
S&P +0.63% Nasdaq +0.75% EuroStoxx +0.75% FTSE +0.58% Dax +0.64% SMI +0.50%
Macro :
- Russia Says It’s ‘Unacceptable’ to Move Grain Ships Via Corridor
- Russian Missile Strikes Cut Ukrainian Power, Water Supplies
- JPMorgan Trading Desk Says Dovish Fed Could Spark 10% S&P Rally
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