Interest Rate Worries Dominate Market Mood

Market sentiment remained tethered to worries about rate hike by the Fed, even as Bank of Japan maintained its ultra-dovish monetary policy. However, markets witnessed a minor rebound after massive losses a day earlier in the aftermath of the Fed’s decision.

Wall Street Futures portend a minor rebound after massive losses on Thursday. Most European benchmarks extended losses as disappointing PMI data added to concerns about the Fed’s hawkish stance. France’s Services PMI dropped to the lowest since 2020 whereas factory activity shrank the most since 2020. Germany’s PMI readings also stayed in contraction territory. The pause by Bank of England as well as a rebound in retail sales, however helped FTSE 100 trade in the green zone. Hopes of further stimulus measures from China however boosted Asian stocks.

Dollar Index gained further as the Fed’s hawkish stance and a surge in crude oil prices fed rate hike fears. Bond yields eased after a massive spike to 17-year highs. Renewed supply concerns lifted crude oil prices. Gold rebounded after massive losses on Thursday. Cryptocurrencies extended losses.

Here is a snapshot of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 34,105.20, up 0.10%
S&P 500 (US500) at 4,341.10, up 0.26%
Germany’s DAX at 15,549.15, down 0.15%
U.K.’s FTSE 100 at 7,722.37, up 0.57%
France’s CAC 40 at 7,178.93, down 0.48%
Euro Stoxx 50 at 4,203.15, down 0.22%
Japan’s Nikkei 225 at 32,397.00, down 0.68%
Australia’s S&P ASX 200 at 7,068.80, up 0.05%
China’s Shanghai Composite at 3,132.43, up 1.55%
Hong Kong’s Hang Seng at 18,085.00, up 2.60%

Currencies:

EUR/USD at 1.0636, down 0.21%
GBP/USD at 1.2237, down 0.46%
USD/JPY at 148.20, up 0.42%
AUD/USD at 0.6442, up 0.39%
USD/CAD at 1.3456, down 0.20%
Dollar Index at 105.63, up 0.25%

Ten-Year Govt Bond Yields:

U.S. at 4.474%, down 0.18%
Germany at 2.7265%, down 0.75%
France at 3.268%, down 0.71%
U.K. at 4.3080%, up 0.12%
Japan at 0.720%, down 3.42%

Commodities:

Brent Oil Futures (Nov) at $93.85, up 0.59%.
Crude Oil WTI Futures (Nov) at $90.40, up 0.86%.
Gold Futures (Dec) at $1,946.05, up 0.33%.

Cryptocurrencies:

Bitcoin at $26,635.22, down 0.65%
Ethereum at $1,594.13, down 1.03%
BNB at $211.06, down 0.32%
XRP at $0.5093, up 0.15%
Dogecoin (DOGE) at $0.0617, down 0.77%

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