World Markets

16 December 2021

World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.

• Dollar turns down in risk-on pivot as Fed chair talks policy
• Asian Stocks Mixed, but Fed’s Hawkish Tilt Increases Investors’ Risk Appetite
• Fed signals three rate hikes in the cards in 2022 as inflation fight begins
• Oil edges up on consumer demand, inventory declines

World Markets – Currency

Traders embraced and then turned way from the U.S. dollar on Wednesday as initial enthusiasm for higher interest rates from the Federal Reserve turned into confidence to take more risk with stocks and other currencies.

The U.S. dollar index rose as much as 0.3% right after the Fed issued a new statement on monetary policy that paved the way for three one-quarter-percentage-point interest rate increases next year.

The euro and British pound each rose about 0.3% against the dollar. The euro traded at $1.1292 and the pound at $1.3262. The Australian dollar gained 1% to $0.7173 and the kiwi rose 0.6% to $0.6782. Versus the Japanese yen, the dollar was up 0.4% to 114.0200.

World Markets – Equity

Asia Pacific stocks were mixed on Thursday morning, with investors assured that the U.S. Federal Reserve’s monetary policy tightening will tackle inflation without derailing the economic recovery from COVID-19.

Japan’s  jumped 1.53% by 9:17 PM ET (2:17 AM GMT) and South Korea’s gained 0.44%. In Australia, the  fell 0.53%. Hong Kong’s fell 0.58%. China’s Shanghai Composite gained 0.46% while the Shenzhen Component edged down 0.10%.

US Interest Rate

The Federal Reserve said on Wednesday it would end its pandemic-era bond purchases in March and pave the way for three quarter-percentage-point interest rate hikes by the end of 2022 as the economy nears full employment and the U.S. central bank copes with a surge of inflation.

Fed doubles the pace of taper to $30 billion a month. Fed median forecast shows three hikes in 2022, three in 2023. However it Leaves current  rate unchanged

Oil

Oil prices edged higher on Wednesday, rebounding from early losses after U.S. inventory data showed strong consumer demand and as the Federal Reserve said it would end its pandemic-era bond purchases in March to slow rising inflation.

Brent crude futures settled up 18 cents, or 0.2%, to $73.88 a barrel. U.S. West Texas Intermediate (WTI) crude ended up 14 cents to $70.87 a barrel.

Economic Events