Asian Stocks Rally on Easing Inflation Concerns and Fed Rate ...
Asian stocks surged on Friday, heading for their strongest week of the year, as the easing of U.S. inflation raised expectations that the Federal Reserve may halt interest rate hikes after this month.
The dollar declined to a new 15-month low against major currencies, while U.S. Treasury yields hovered near multi-week lows following the sharpest weekly decline in four months.
Gold was set for its most impressive week in three months as the dollar struggled, while crude oil reached its highest level in nearly three months.
Although money market traders still consider a quarter-point increase in the Fed funds rate on July 26 as highly likely, they have reduced the probability of another rate hike this year to just 20%. (FEDWATCH)
Data released on Thursday revealed the smallest rise in U.S. producer price inflation in almost three years, supporting the view of milder inflation following a report the previous day that showed consumer price growth at the slowest pace in over two years.
"What this means is that the Federal Reserve is nearing the end of the most aggressive tightening cycle in four decades, so it justifies the rapid adjustments we've witnessed across various asset classes," explained Tony Sycamore, a market analyst at IG in Sydney.
"The stock market has soared, and the dollar is under significant pressure."
MSCI's broadest index of Asia-Pacific shares excluding Japan (.MIAPJ0000PUS) surged 0.7% on Friday, putting it on track for its largest weekly gain in eight months, reaching 5.4%.
XAUUSD
SELL 1962- 1964💯💯
✅ TP1: 1957
✅ TP2: 1952
✅ TP3: 1947
🛑 SL: 1968
The dollar declined to a new 15-month low against major currencies, while U.S. Treasury yields hovered near multi-week lows following the sharpest weekly decline in four months.
Gold was set for its most impressive week in three months as the dollar struggled, while crude oil reached its highest level in nearly three months.
Although money market traders still consider a quarter-point increase in the Fed funds rate on July 26 as highly likely, they have reduced the probability of another rate hike this year to just 20%. (FEDWATCH)
Data released on Thursday revealed the smallest rise in U.S. producer price inflation in almost three years, supporting the view of milder inflation following a report the previous day that showed consumer price growth at the slowest pace in over two years.
"What this means is that the Federal Reserve is nearing the end of the most aggressive tightening cycle in four decades, so it justifies the rapid adjustments we've witnessed across various asset classes," explained Tony Sycamore, a market analyst at IG in Sydney.
"The stock market has soared, and the dollar is under significant pressure."
MSCI's broadest index of Asia-Pacific shares excluding Japan (.MIAPJ0000PUS) surged 0.7% on Friday, putting it on track for its largest weekly gain in eight months, reaching 5.4%.
XAUUSD
SELL 1962- 1964💯💯 ✅ TP1: 1957
✅ TP2: 1952
✅ TP3: 1947
🛑 SL: 1968
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