- Most Asian markets rallied along with US share futures on Wednesday, as traders assessed the Federal Reserve's indication of increased efforts to combat inflation threats and official optimism about China's outlook.
- The Asia-pacific share index of MSCI increased roughly 1%, with Hong Kong among the gainers. China's deputy premier, Liu He, expressed complete confidence in the Chinese economy for the coming year, promising further support for enterprises.
- Futures for the S&P 500 and the NASDAQ 100 rose, signalling some stabilization after US equities fell overnight and indicators of equity volatility increased.
- The next Fed meeting, Chair Powell said, should address whether to end bond purchases a few months earlier, and he retired the term "transitory" to describe high inflation. This might pave the way for earlier interest-rate increases. Money markets anticipate an increase of roughly 60 basis points by the end of 2022.
The 10-Yr Treasury yield in the United States increased but remained below 1.50%. After decreasing in the US session, the yield spread between 5-Yr and 30-Yr Treasuries was at its lowest since March of last year. The dollar remained stable, and crude oil rebounded.