- Asian stocks rose alongside US equities as investors braced for the Federal Reserve's interest-rate announcement later Wednesday.
- Stocks in Hong Kong, Japan, and Australia surged, as did futures for the region's Euro Stoxx 50. Futures for the S&P 500 were unchanged after the index gained 1.3% on Tuesday, while the tech-heavy Nasdaq 100 gained 1.4% as the two American indexes gained for the second day.
- Government bond yields in Australia and New Zealand increased, while Treasury rates declined marginally. The drop in US yields followed a jump on Tuesday that added 19 bps to the 2-yr yield and 10 bps to the 10-yr yield. Currency markets remained quiet, with the dollar index slightly moved.
- The combination of rising stock prices and a generally tranquil bond market suggested a renewed desire for risk-taking as investors sought evidence of stability following the failure of three US banks and UBS's takeover of Credit Suisse.
- US Treasury Secretary Yellen stated that, like it did with Silicon Valley Bank, the US government might cover deposits at other US lenders. Traders also increased their odds that the Fed will raise interest rates by 25 bps after market pricing earlier in the week was divided between a hike and a pause.
- Fed officials are due to release revised rate predictions for the first time since December, providing advice on whether additional hikes are still expected this year.
