- Stocks gained following Fed's Powell's encouraging statements on monetary policy tightening, but crude oil extended gains prompted by Russia's invasion of Ukraine.
- In an Asian stock index, Japan led the way higher, while China and Hong Kong fluctuated. On Wednesday, sweeping rallies lifted the S&P 500 and the technology-heavy Nasdaq 100, sending US futures lower.
- In testimony to US senators, Fed's Powell advocated a gradual increase in the federal funds rate and inflation vigilance, while hinting that the world's largest economy can withstand higher borrowing costs.
- Because of the sanctions imposed on Russia, traders have shied away from its resources, raising fears of energy, grain, and metal shortages. Brent crude hit a new high of $116 per barrel, while a commodity index hit a new high.
- The desire for safe havens sparked by the war has eased a little. Bonds in Australia and New Zealand have fallen in value. Treasury bonds took a beating on Wall Street and have only recovered a part of their losses. The 10-year yield in the US is currently about 1.85%, much below the 2% levels observed before Russia's intervention. The dollar rose slightly, while gold remained unchanged.
