Stocks, crypto and gold rallied as Powell talked up slower rate hikes. Oil prices were muted on demand uncertainties in China and Opec+’s supply cut. Dollar lost ground.

Updated time: 06 Dec, 2022, 07:25 (UTC+04:00)

Stocks:

Wall Street rallied on optimism after Fed Chairman Powell announced a future slowdown in rate hikes starting in December, also sending Treasury yields down and creating a sea of green in big tech. Coupled with lower-than-expected ADP employment data of only 127,000 compared to 200,000 estimates that fuels the Fed’s cooling down rates, S&P 500 rose 3.09%,  Dow Jones climbed 2.18%, followed by outstanding Nasdaq to gain 4.41%.

Stocks, crypto and gold rallied as Powell talked up slower rate hikes. Oil prices were muted on demand uncertainties in China and Opec+’s supply cut. Dollar lost ground.

Futures traded steady with each up 0.2%. Non-farm payrolls, initial jobless claims, unemployment, personal income and PCE will be next focus.

Commodities:

Weakening Chinese manufacturing activity due to lockdown measures along with concerns related to OPEC+’s last meeting about the supply cut and the dollar drop ended the three-day rally of oil prices. Brent crude futures and WTI crude futures remained unchanged at $86.83 and $80.50 respectively on per barrel.

Metal prices rallied on speculation of smaller rate hikes and scaleback of COVID-19 restrictions in China. Spot gold inched up 0.5% to $1,778.20 while gold futures added 1.8% to $1,791.25. Copper prices firmed around $3.7838 a pound, after gaining more than 4% in the previous session.

Currencies: 

Investors' keying on comments of the Fed slowing the interest rate hike pushed the dollar index down more than 1% to 105.69, and is on track for a 5.10% downtrend. The dollar also cut 0.48% to 137.39 yen and was predicted to lose 7.39% this month. The euro and sterling added around 0.2% to $1.04325 and $1.2086 respectively. Antipodean currencies were buoyed by easing COVID-19 curbs in China.

Cryptocurrencies:

Partly recovering from the FTX crash and cheering with the Fed’s dovish pivot, crypto ended in green. Bitcoin broke the $17,000 threshold to trade at $17,145.77 while Ethereum rose 6.6% to settle just below $1,300. DOGE shone with 26.8% gains, changing hands at $0.105428 besides a significant weekly growth of 35%. The spotlight belonged to Kraken as it laid off 30% of global staff in response to the market downturn.

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