Markets Price In A Less Hawkish Fed

Markets Price In A Less Hawkish Fed

October 18, 2023

World markets reflected cautious optimism ahead of the release of the FOMC minutes on Wednesday and the CPI update on Thursday. The recent dovish hints by Fed officials dragged the Dollar and Bond yields lower, bolstering market sentiment. Meanwhile markets eagerly wait for the fresh updates from the earnings season.

Wall Street Futures are trading with mild gains. European benchmarks are trading on a mixed note. Asian stocks continued to rise.

Dovish hints in recent commentaries by Fed officials triggered the Dollar’s retreat. Bond yields too eased across regions. Crude oil climbed down as markets shrugged off supply worries linked to Middle East conflict. Gold extended gains, aided by an easing in the Dollar’s strength and the drop in bond yields. Cryptocurrencies extended losses.

Here is a snapshot of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 33,806.90, up 0.20%
S&P 500 (US500) at 4,367.60, up 0.21%
Germany’s DAX at 15,438.65, up 0.10%
U.K.’s FTSE 100 at 7,634.72, up 0.09%
France’s CAC 40 at 7,123.56, down 0.54%
Euro Stoxx 50 at 4,193.85, down 0.27%
Japan’s Nikkei 225 at 31,938.50, up 0.55%
Australia’s S&P ASX 200 at 7,088.40, up 0.68%
China’s Shanghai Composite at 3,078.96, up 0.12%
Hong Kong’s Hang Seng at 17,926.50, up 1.27%

Currencies:

EUR/USD at 1.0609, up 0.06%
GBP/USD at 1.2282, down 0.02%
USD/JPY at 148.65, down 0.03%
AUD/USD at 0.6422, down 0.14%
USD/CAD at 1.3599, up 0.12%
Dollar Index at 105.77, down 0.05%

Ten-Year Govt Bond Yields:

U.S. at 4.562%, down 1.96%
Germany at 2.7210%, down 2.23%
France at 3.274%, down 2.33%
U.K. at 4.3885%, down 0.94%
Japan at 0.767%, down 0.97%

Commodities:

Brent Oil Futures (Dec) at $87.34, down 0.35%.
Crude Oil WTI Futures (Nov) at $85.62, down 0.41%.
Gold Futures (Dec) at $1,883.90, up 0.46%.

Cryptocurrencies:

Bitcoin at $27,175.84, down 1.74%
Ethereum at $1,573.89, down 0.95%
BNB at $206.97, down 0.89%
XRP at $0.4861, down 2.54%
Solana (SOL) at $22.31, down 0.01%.

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