The market’s reaction is likely to change as investors assimilate the US Fed’s comments. A global wave of monetary tightening and commodity-fueled price pressures could further hurt economic growth. Russia is also continuing its war in Ukraine and Covid lockdowns in China are rumbling global supply chains.
SGX Nifty up nearly 1%
Nifty futures on the Singapore Stock Exchange rose 152 points, or 0.91%, to 16,852 in early trades on Thursday, signaling a positive start for Indian indices.
Indian stock markets fell on Wednesday after the Reserve Bank of India surprised the market with a hike in key rates, citing inflationary pressures.
The central bank’s monetary policy committee, in an off-cycle meeting, raised the policy rate by 40 basis points.
Sensex fell 1,306.96 points to end the day at 55,669.03 after the RBI rate hike, while Nifty fell 391.50 points to 16,677.60.
Asian stocks rise on less hawkish Fed stance; oil is rising
Stocks soared in Asia, bonds surged and the dollar tumbled amid a fit of investor relief after the Federal Reserve hiked interest rates as expected to fight inflation while countering surges. fears of massive increases.
An Asian stock gauge rose about 1%, supported by Hong Kong. Chinese stocks were mixed after reopening after a public holiday. U.S. futures traded after the S&P 500 index rose 3%, the biggest since 2020.
Fed Chairman Jerome Powell said a 75 basis point hike is “not something the committee is actively considering,” spurring the market rally. The Fed raised rates half a point and signaled similar moves for the next two meetings.
Crude hit $108 a barrel under a European Union plan to ban Russian barrels over the next six months. Wheat rose on the possibility of curbing exports by the major Indian producer.
S&P 500 futures lost 0.1%, Nasdaq 100 futures fell 0.1% and Euro Stoxx 50 futures climbed 2.2%.
Australia’s S&P/ASX 200 index rose 0.6%, Hong Kong’s Hang Seng index rose 1.5% and China’s Shanghai Composite index rose 0.4%.
Early moves in Asia followed an overnight U.S. rally where the Dow Jones Industrial Average rose 2.81%, the S&P 500 gained 2.99% and the Nasdaq advanced 3.19%.
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