- The majority of Asian stocks fell as investors weighed the Federal Reserve's plan to reduce its balance sheet by more than $1 trillion per year while raising interest rates in an effort to combat inflation.
- An Asia-Pacific share index fell for the third day in a row, dragged down by Japan. Markets in Hong Kong and China were more stable, with officials signalling again that they intend to loosen policy in the face of a covid outbreak and property-market woes. US equity futures fell after a tech-led Wall Street retreat on Wednesday.
- Treasuries rose, the yield curve steepened, and the dollar index flirted with a three-week high as investors digested the Fed's March meeting minutes.
- To tighten financial conditions, the minutes indicated that the central bank is considering half-point rate increases and reducing its massive bond holdings at a maximum rate of $95 billion per month.
- Commodity markets are still being tossed around by disruptions caused by Russia's war in Ukraine and efforts to reduce raw-material costs. Oil prices rose, reversing a drop precipitated by the International Energy Agency's decision to deploy 60mln barrels from emergency stockpiles.
