Relief Rally As Fed Seen Less Hawkish Than Feared

Global markets rallied as the Fed acted on expected lines and appeared to be in no mood to raise rates higher than the 50 basis points anticipated by the market. India, Saudi Arabia and Brazil also hiked interest rates whereas the Bank of England is seen raising rates by a quarter percentage on Thursday.

Stocks rallied in Wall Street on Wednesday. Asian and European bourses are firm on Thursday. Wall Street futures are however trading in mildly negative territory. The Dollar shed recent gains, but recovered subsequently. Bond yields have increased to reflect the increased cost of borrowing. Crude prices surged as more clarity emerged on the E.U.’s proposed ban on oil from Russia. The OPEC+ is seen agreeing to only a modest increase in output, amidst concerns of the lockdowns in China impacting demand for oil. Gold and cryptocurrencies gained as the pressure of an extremely hawkish Fed waned.

Here is a snapshot of the world markets at this hour across stocks, currencies, bonds, commodities and cryptocurrencies.

Stock Indexes:

DJIA (US30) at 33,885.70, down 0.51%
S&P 500 (US500) at 4,269.70 down 0.71%
Germany’s DAX at 14,167.50, up 1.41%
U.K.’s FTSE 100 at 7,568.02, up 1.00%
France’s CAC 40 at 6,494.06, up 1.54%
Euro Stoxx 50 at 3,772.25, up 1.27%
Japan’s Nikkei 225 at 26,818.53, down 0.11% (May, 2)
Australia’s S&P ASX 200 at 7,364.70, up 0.82%
China’s Shanghai Composite at 3,067.76, up 0.68%
Hong Kong’s Hang Seng at 20,793.40, down 0.36%

Currencies:

EURUSD at 1.0599, down 0.21%
GBPUSD at 1.2539 down 0.65%
USDJPY at 129.74, up 0.52%
AUDUSD at 0.7217, down 0.62%
USDCAD at 1.2757, up 0.20%
Dollar Index at 102.86, up 0.27%

Ten-Year Govt Bond Yields:

U.S. at 2.964%, up 1.68%
Germany at 0.9935%, up 1.27%
France at 1.518%, up 0.46%
U.K. at 1.970%, up 0.10%
Japan at 0.224%, down 0.44% (May 2)

Commodities:

Crude Oil WTI Futures (Jun) at $108.08, up 0.25%
Brent Oil Futures (Jul) at $110.69, up 0.50%
Gold Futures (Jun) at $1,894.64, up 1.38%

Cryptocurrencies:

Bitcoin at $39,514.44, up 1.66%
Ethereum at $2,924.99, up 2.98%
BNB at $399.45, up 2.45%
Solana at $92.81, up 5.80%
XRP at $0.6396, up 3.96%

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