Asian stock markets rose on Wednesday as investors had high hopes ahead of the Federal Reserve’s rate-setting meeting.
Hong Kong’s Hang Seng Index was up 2%, China’s CSI 300 was up 0.3% and South Korea’s Kospi was up 0.8%. Japan’s Topix rose 1.8% after the market reopened after a one-day break for the spring equinox holiday.
Bank stocks also rose, with the Hang Seng Finance Index and Topics Banks Index gaining 2% and 2.6%, respectively.
Investors will be watching the Fed’s interest rate decision later in the day. The futures market shows that traders are expecting his 0.25% rise to 4.75% from his current 4.5%.
Expectations for rate hikes have fallen in recent weeks as traders bet turmoil in the banking sector The collapse of Silicon Valley Bank and UBS’s takeover of rival Credit Suisse will trigger the Fed to ease its tightening cycle.
The market now expects rates to peak at just under 5% in June and end the year at around 4.38%.
The Bank of England will also meet on Thursday. Prices from the swap market show investors split between a 0.25 percentage point gain and no change.
Efforts to curb contagion in the financial system, including government proposals from US Treasury Secretary Janet Yellen You can intervene to get all deposits back A small lender in the country helped ease my nerves on Tuesday.
The blue-chip S&P 500 index rose 1.3%, while the tech-heavy Nasdaq Composite rose 1.6%.
The dollar was flat against a basket of other currencies on Wednesday, approaching a five-week low prior to the Fed’s decision.
U.S. Treasurys rallied, with the interest-rate-sensitive two-year yield dropping 0.04 percentage points to 4.14%.
The 10-year bond yield fell 0.02 points to 3.59%. Yield is inversely proportional to price.
European futures also showed gains, with Euro Stoxx 50 and FTSE 100 contracts up 0.3% and 0.2% respectively.
Crude oil prices fell, with US benchmark West Texas Intermediate down 0.7% to trade at $69.19 a barrel, breaking a two-day gain of nearly 4%.
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