03/11/2023
Today’s Announcements & News
Asia
Asian markets surged, led by South Korea, in response to the U.S. Federal Reserve’s decision to keep its benchmark interest rates unchanged. Investors also analyzed inflation and trade data across the region. The Fed’s decision to maintain rates was made against a backdrop of economic growth, with labor market conditions and inflation above the central bank’s target. South Korea reported a third consecutive month of increasing consumer prices, rising by 3.8% year-on-year. Japan’s Nikkei 225 extended gains, and the Topix reached three-week highs with a three-day winning streak. South Korea’s Kospi and Kosdaq saw substantial increases, while Hong Kong’s Hang Seng index and China’s CSI 300 also made gains. Taiwan’s Taiex recorded its best one-day percentage gain in over nine months, and Australia’s S&P/ASX 200 edged close to its highest level in nearly two weeks.
US
Stocks saw significant gains on Thursday, as Treasury yields fell, leading investors to speculate that the Federal Reserve might not raise rates further in 2023. The Dow Jones Industrial Average rose by 515 points, or 1.5%, with steady gains as yields dropped. Over the course of two days, the Dow has increased by more than 600 points. The S&P 500 and Nasdaq Composite also performed well, climbing 1.8% and 1.7%, respectively. Both the S&P 500 and Dow are set for their most substantial weekly gains of the year, potentially marking the best day since May for the broader market index.
This rally was widespread, with all 11 S&P 500 sectors trading positively. The real estate and consumer discretionary sectors, which had been impacted earlier in the year by concerns about higher rates, led the gains.
Additionally, bond yields declined, with the 10-year Treasury yield falling approximately 12 basis points to 4.674%. This drop followed the benchmark yield’s rise above 5% last month.
Commodity
On Thursday, oil prices rebounded by more than $2 per barrel, breaking a three-day declining trend, as risk appetite returned to financial markets following the U.S. Federal Reserve’s decision to maintain benchmark interest rates.
Brent crude futures climbed $2.29, or 2.7%, to reach $86.92 per barrel at 1:39 p.m. EDT. U.S. West Texas Intermediate crude futures also increased by $2.23, or 2.8%, reaching $82.67 per barrel.
Meanwhile, gold prices remained relatively stable on Thursday as the U.S. dollar and Treasury yields retreated, with expectations that the Federal Reserve might not raise interest rates further. Investors were also awaiting U.S. non-farm payrolls data for additional insights. Spot gold traded near $1,981.69 per ounce, and U.S. gold futures saw a 0.1% gain at $1,989.20.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.
