Oil Drops and Stocks Rise Before the Fed Meeting – Asia Market Wrap
Global stock markets rallied for a third day, as investors looked past short-term geopolitical issues and sought signals of stability, even as the battle in Iran roiled energy markets and fuelled inflation fears. Oil spilt.
The MSCI All Country World Index, the broadest measure of global equities, increased 0.4%, marking its longest winning streak in almost a month. Asian markets surged 2%, boosted by memory-chip giants like Samsung, which are considered less vulnerable to the Middle East conflict.
Equity-index futures for the US and Europe increased 0.5%, indicating that the gains may spread to other regions. The actions suggest cautious optimism, despite the fact that the Middle East war shows no indications of diminishing.
Nonetheless, the US and Israel continued their strikes with little clarity about when they would finish, with Israel claiming to have assassinated Iran’s security head, Ali Larijani, in a midnight operation. Trump vowed to expand raids on Kharg Island, Iran’s primary export center, as Gulf countries continued to experience drone attacks from Iran.
In other market developments, the Dollar index fell 0.1% as investors awaited the Fed’s decision. Treasuries climbed, with the benchmark 10-year yield falling 2 bps to 4.18%. In commodities, gold declined 0.1% to below $5,000 per ounce.
