Stock globally extended rally as Federal Reserve express caution against speedy monetary tightening and prospect of strong corporate earnings announcement.
Four Fed officials earlier said they will support rate hike at a pace that does not disrupt economic recovery which added positive sentiment to the market from earlier hawkish tone of the Fed.
Four Fed officials said they’ll back interest-rate increases at a pace that doesn’t disrupt the economy, calming markets unnerved by previous hawkish messages from the central bank.
Asian stock mostly inched up on Tuesday with HSI, KOSPI, SET and TOPIX up by 1.07%, 1.87%, 0.78% and 0.01% respectively.
Futures on the Nasdaq 100 Index were little changed, while those on the S&P 500 Index were 0.2% lower.
The dollar index weakened hovering around 96.72 while the treasury yield curves flattened.
“Good news is that some Fed officials are finally out trying to soothe investors’ nerves saying that they still want to avoid unnecessarily disrupting the U.S. economy,” Ipek Ozkardeskaya, a senior analyst at Swissquote, wrote in a note.
“But what will really make the difference is the quantitative tightening and given the steep rise in Fed’s balance sheet since March 2020, even halting the growth would be an abrupt change.”