China reassures, ignites stock market rally as the FOMC's decision is awaited
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Update time : 2022-03-16 20:13:20
Chinese officials offered reassuring words and sparked dramatic rally equities and risk appetites more broadly. At the same time yields are surging as the markets anticipate the Fed to signal a more aggressive tightening course as it upgrades its inflation forecasts. China's CSI 300 rallied 4.3%, while the Hang Seng soared 9% and an index that tracks mainland shares listed in HK jumped 12.5%. Most equity markets in the region rose 1-2%. Europe's Stoxx 600 is around 2.2% better and US futures point to a strong opening. The US 10-year yield is a little firmer at 2.15%. European benchmark yields are mostly 2-5 bp higher. The 10-year JGB yield is a little near 0.20%, as it approaches the top of the Yield-Curve Control band (0.25%). The dollar is on its heels. The Scandis are leading the charge followed by the dollar bloc. The dollar managed to extend its advance against the yen for the seventh consecutive session yesterday and is edging higher today. Emerging market currencies are also gaining on the greenback, and the JP Morgan Emerging Market Currency Index is rising for the third consecutive day. Rising yields seem to be tarnishing gold. It is little changed, after falling for the past three sessions.
