- On Thursday, Asian markets climbed alongside US and European futures, extending a Wall Street surge after Fed's Powell claimed the central bank had made success in its fight against inflation.
- A benchmark index of Asian stocks rose as much as 1%, with Hong Kong-listed technology firms among the best performers. In the Japanese and Chinese mainland markets, the picture was more muddled.
- The dollar fell further against both G-10 and emerging-market currencies. A measure of the strength of the dollar fell to its lowest level since April as global investors braced for a possible peak in US interest rates.
- Treasury rates fell approximately 10 bps from the previous day in major maturities ranging from 2 to 10 yrs. Australian and New Zealand bonds closely matched treasury closing moves on Wednesday. The benchmark 10-yr yield in Japan has remained 2 bps below the central bank's 0.5% threshold.
- Fed's Powell's remark that the disinflation process has begun, implied that the aggressive tightening cycle is beginning to have the desired impact of slowing the rate of price growth, allowing the S&P 500 to rise more than 1%. The Nasdaq 100 beat major benchmarks, closing at its highest level since September.
- Positioning in US swaps markets indicates the Fed is getting closer to reducing rates, as traders wager that economic conditions will prohibit the Fed from raising rates further, as policymakers still expect.
