GLOBAL MARKETS DJIA 34589.77 737.24 2.18% Nasdaq 11468.00 484.22 4.41% S&P 500 4080.11 122.48 3.09% FTSE 100 7573.05 61.05 0.81% Nikkei Stock 28256.33 287.34 1.03% Hang Seng 18895.03 297.80 1.60% Kospi 2483.93 11.40 0.46% SGX Nifty* 18984.50 68 0.36% *Dec contract USD/JPY 136.77-78 -0.92% Range 138.12 136.51 EUR/USD 1.0426-29 +0.17% Range 1.0448 1.0402 CBOT Wheat Dec $7.714 per bushel Spot Gold $1,775.15/oz 0.4% Nymex Crude (NY) $80.60 $2.40 U.S. STOCKS
Stocks rallied Wednesday after Federal Reserve Chair Jerome Powell signaled a potential slowdown in interest-rate increases, powering the Dow Jones Industrial Average more than 700 points higher and into a new bull market.
The S&P 500 and Nasdaq Composite jumped 3.1% and 4.4%, respectively, and all three indexes ended November with a second consecutive month of gains.
The S&P 500 rose 122.48 points, or 3.1%, to 4080.11. The Dow Jones Industrial Average added 737.24 points, or 2.2%, to 34589.77. The Nasdaq Composite advanced 484.22 points, or 4.4%, to 11468.00.
ASIAN STOCKS
Japanese stocks were higher in early trade, led by gains in electronics and tech stocks, as hopes grew for slower tightening by the Fed. USD/JPY was at 137.46 after falling to a three-month low of 137.28 earlier, down from 138.47 as of Wednesday's Tokyo stock market close. China's Covid measures remained in focus. The Nikkei Stock Average was up 1.6% at 28417.44.
South Korea's benchmark Kospi rose 1.1% to 2499.70 in early trade, tracking Wall Street's rally overnight after Fed Chairman Powell signaled a downshift in policy tightening. His indication that the Fed was on track to raise rates by 50bps in December after a series of 75bp increases was buoying investor sentiment. Tech and internet stocks were leading the gains. USD/KRW was 1.8% lower at 1,294.60 on risk-on sentiment, touching the 1,200 level for the first time since Aug. 12.
Hong Kong stocks rose in morning trade, extending a recent rally following signals of slower interest-rate increases from Fed Chair Jerome Powell. The benchmark Hang Seng Index was up 1.7% at 18906.60. The market was further buoyed by Chinese authorities' latest comments on the country's Covid policy, after Beijing's top official in charge of pandemic control said efforts to combat the virus were entering a new phase. "That seems to hint at some plans being underway for reopening next year," IG said.
Chinese shares rose, tracking broad gains among regional markets, which were buoyed by U.S. Fed Chair Powell's comments overnight signaling that a slowdown in rate increases was coming. The benchmark Shanghai Composite Index rose 1.2% to 3190.06, the Shenzhen Composite Index gained 1.5% to 2048.95 and the ChiNext Price Index added 2.0% to 2393.26. Auto stocks advanced, with BYD gaining 4.4% and SAIC Motor adding 0.6%. China appeared to be softening its tone on its Covid-19 policy, after Vice Premier Sun Chunlan said efforts to combat the virus were entering a new phase, IG said. "That seems to hint at some plans being underway for reopening next year," it added.
FOREX
USD/JPY was at 136.88 after hitting a three-month low of 136.50 earlier, as the prospects of the Fed's slower tightening pushed U.S. Treasury yields lower overnight. USD/JPY was likely to continue trending lower as the pair is susceptible to U.S. bond yield movements, IG said. U.S. inflation data due later in the day would be closely watched as well as several Fed speakers, it added.
NZD/USD traded in a 0.6190-0.6290 range overnight, but shot above 0.6300 after Fed Chairman Jerome Powell made unusually frank remarks regarding a potential pivot by the central bank, BNZ said. Powell noted "the time for moderating the pace of rate increases may come as soon as the December meeting." However, BNZ highlighted that Powell reiterated that the U.S. inflation fight was far from over with policy rates to stay at restrictive levels for some time. The last four Fed decisions have seen 75 basis-point increases, with the Fed Funds rate (3.75%-4%) up 375bps so far this year.
METALS
Gold was higher in early Asian trade, supported by overall weakness in USD and Treasury yields following comments by Fed Chairman Powell who signaled that a slowdown in rate increases is coming. Investors' focus would also likely remain on China's Covid-19 measures. "If China lifts more lockdowns, a risk rally should help keep gold prices supported," Oanda said. Spot gold was 0.4% higher at $1,775.15/oz.
OIL SUMMARY
Oil prices were mixed in early Asian trade, as investors continue to digest data which showed another large weekly drop in U.S. crude inventories. Focus remains on the OPEC+ meeting on Dec. 4, where members will decide on oil-production levels. "The market remains uncertain about OPEC's decision, with some expecting a cut while others suggest a rollover of the current deal is more likely," ANZ said. "If China's Covid rules are slowly eased and OPEC stays the course, crude prices could rally," Oanda said. Front-month WTI futures were 0.1% lower at $80.47/bbl; front-month Brent gained 3.0% to $86.79/bbl.
TOP HEADLINES Powell Signals Fed Prepared to Slow Rate-Rise Pace in December China Caixin Manufacturing PMI Marks Fourth Straight Month of Contraction U.S. Economic Growth Slowed This Fall, Fed's Beige Book Says House Approves Imposing Railroad Labor Deal, Paid Sick Leave Measure EU Says It Can't Seize Frozen Russian Central-Bank Assets for Ukraine BOJ Board Member Noguchi Pledges to Continue Monetary Easing U.S. grew 2.9% in third quarter, GDP shows, and there's little sign of recession for now South Korea's Exports Contracted for Second Straight Month Sam Bankman-Fried Denies Knowing Scale of Bad Alameda Bets GE Puts $31 Billion Value on Healthcare Spinoff Elon Musk Says Apple, Twitter Have 'Resolved' Differences After Meeting Zuckerberg Says Apple Has Too Much Clout Over Apps Salesforce Co-CEO Bret Taylor to Step Down Twitter Becomes Stage for China Protests Despite Ban by Beijing Amazon CEO Has No Regrets on Hiring Spree as Layoffs Start Victoria's Secret says inflation likely to hurt women's-wear shoppers for rest of the year Starwood-Backed Reverse Mortgage Originator Files for Bankruptcy
(END) Dow Jones Newswires
11-30-22 2215ET
