Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
Graphic: World FX rates http://tmsnrt.rs/2egbfVh
LONDON, Nov 30 (Reuters) - Wall Street equities rose on
Wednesday while U.S. Treasury yields pared gains and the dollar
lost ground after Federal Reserve Chair Jerome Powell said the
central bank could slow the pace of interest rate hikes "as soon
as December", even as he cautioned that inflation was still too
His words appeared to soothe investors who were fearing a
more hawkish statement even as Powell warned that the fight
against inflation was far from over and that key questions
remain unanswered, including how high rates will ultimately need
to rise and for how long.
"The market is taking this glass-half-full, it could've been
worse approach. Powell didn't really say anything that new,"
said Sameer Samana, senior global market strategist at Wells
Fargo Investment Institute in Charlotte, North Carolina.
"The path of least resistance since the last inflation
number has been higher. There's momentum to the upside in place
until something outright stops it," said Samana.
"Policy continues to tighten. People are just not
appreciating it," he added, noting that even if the Fed were to
pause rate hikes it is still shrinking the balance sheet which
he sees as "almost as important if not more important than the
level of rates."
The Dow Jones Industrial Average rose 210.82 points,
or 0.62%, to 34,063.35, the S&P 500 gained 48.55 points,
or 1.23%, to 4,006.18 and the Nasdaq Composite added
228.54 points, or 2.08%, to 11,212.32.
MSCI's gauge of stocks across the globe
gained 1.19%. Emerging market stocks rose 2.06%.
In Treasuries, Benchmark 10-year notes were down
3.9 basis points to 3.709%, from 3.748% late on Monday. The
30-year bond was last down 1.1 basis points to yield
3.7912%, from 3.802%. The 2-year note was last down
4.5 basis points to yield 4.4277%, from 4.473%.
In currencies, the dollar index fell 0.533%, with the
euro up 0.46% to $1.0374.
The Japanese yen strengthened 0.35% versus the greenback at
138.23 per dollar, while sterling was last trading at
$1.2011, up 0.49% on the day.
Oil prices were rallying on Wednesday on signs of tighter
supply, a weaker dollar and optimism about a potential recovery
of demand in China.
U.S. crude rose 3.04% to $80.58 per barrel and
Brent was at $85.41, up 2.87% on the day.
(Reporting by Sinéad Carew in New York, Dhara Ranasinghe, Marc
Jones and Amanda Cooper in London; additional reporting by Kane
Wu in Hong Kong, editing by Chizu Nomiyama and Elaine