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 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.
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Disclaimer : All information in this report is collected from various sites on internet. Although we have taken all precautions for correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed is authors own views. We are not responsible for any losses on account of following the same.