US equities bounced back as investors continued to digest the Federal Reserve’s 25-basis-point rate hike and the monetary policy outlook. Falling oil prices improved risk sentiment, while Treasury yields declined sharply and the US dollar eased. Gold climbed as US yields fell. Attention now turns to the Bank of Japan interest rate decision and guidance on future tightening.
📊 Equities
US equity markets bounced back as investors continued to digest the Federal Reserve’s 25-basis-point rate hike and the outlook for monetary policy. Falling oil prices helped improve risk sentiment. The Nasdaq led the gains, rising 1.69%, while the S&P 500 advanced 1.14% and the Dow gained 0.61%.
🛢️ Oil
Oil prices remained under pressure as concerns over global supply continued to ease. Reports that Saudi Arabia is finding alternative export routes for its crude helped reduce fears over potential supply disruptions, with Brent falling 1.69% to $104.04 and WTI declining 1.32% to $101.08.
🥇 Gold
Gold benefited from the sharp drop in US yields, climbing 1.83% on the session to $4,340.09.
💵 FX & Bonds
US Treasury yields moved notably lower, with the 2-year yield falling 7.0 basis points to 4.666% and the benchmark 10-year dropping 9.2 basis points to 4.931%. The USD Index slipped 0.12% to 100.21.
| Market | Change | Close |
|---|---|---|
| Dow | +0.61% | 51,778 |
| S&P 500 | +1.14% | 7,637 |
| Nasdaq | +1.69% | 26,418 |
| USD Index | -0.12% | 100.21 |
| US Treasury – 2 Year | -7.0 bps | 4.666% |
| US Treasury – 10 Year | -9.2 bps | 4.931% |
| Oil – Brent | -1.69% | $104.04 |
| Oil – WTI | -1.32% | $101.08 |
| Gold | +1.83% | $4,340.09 |
📌 Today’s Focus
The Bank of Japan is set to take centre stage during Asian trading. Markets will be watching closely for the expected rate hike, but the bigger driver for the yen is likely to be any guidance from policymakers on whether further tightening is likely in the months ahead.
🔹 Asian Session – 9.30 am – Australia – Reserve Bank of Australia Governor Michele Bullock Speaks
🔹 Asian Session – Tentative – Japan – Bank of Japan Interest Rate Decision
🔹 Asian Session – Tentative – Japan – Bank of Japan Press Conference
🔹 European Session – 4.00 pm – UK – Retail Sales Data
🔹 European Session – 8.30 pm – EU – ECB President Christine LaGarde Speaks