An Interest Rate Hike Of 75 BPS And Powell’s Comments On Continuing Aggressive Tightening Weighed Down Stocks, Commodities And Cryptos. Only Dollar Outclassed.

Updated time: 10 Nov, 2022, 13:56 (UTC+04:00)

Stocks:

Global stocks moved on a roller coaster, then dipped in red for the third consecutive day following another 75ps rate hike for the fourth time in a row from the central bank, erasing investors’ initial hope that the Fed would be dovish at its December meeting. Powell claimed the tightening cycle is not as close to the end as previously thought, which for the majority may be a moment of frustration but totally understand the course.

An Interest Rate Hike Of 75 BPS And Powell’s Comments On Continuing Aggressive Tightening Weighed Down Stocks

Dow Jones, S&P 500 and Nasdaq lost 1.55%, 2.5% and 3.36% respectively with futures were down 0.2% apiece. Ahead in Thursday’s session, investors will be closely monitoring fresh Nonfarm Payrolls data.

Commodities:

Oil futures sank opposite to a firm dollar on Fed’s hawkish stance together with looming supply risks fueled by the EU's ban on Russian oil imports and OPEC+’s struggle to hit output quotas. Brent crude futures shed 0.5%, to $95.72 while U.S. WTI crude futures retreated 0.7% to $89.41, on per barrel.

Fed’s 75pbs rate hike with a higher rate flag for the future shook gold prices’ gains. Spot gold slumped 0.2% to $1,632.45 an ounce while gold futures dropped nearly 1% to $1,634.60.

Currencies:

The dollar was boosted by higher rates, lifting its index up to 112.13 and knocking down other majors. Sterling slid 0.8% to sit at $1.1378 despite strong rate hike bets on the BoE later in the day. The euro followed the trend lower and traded at $0.9810. Yen held firmly at 147.90 per dollar, triggering the support from the official intervention. The Chinese yuan was hovering near record lows offshore at 7.3408 per dollar. Aussie and kiwi lost. 

Cryptocurrencies:

Crypto joined the bloodbath following the Fed's latest announcement. Bitcoin tumbled in red moderately but still steadied above $20,000. Ethereum fell more than 4% to trade at $1,546.64. Doge and other crypto coins plummeted.

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