Stocks rally on volatile trading ahead of Powell speech - TopForex.Trade

Stocks rally on volatile trading ahead of Powell speech

Stocks climbed on Wednesday after a volatile open as traders weathered the Covid events in China and waited for a speech by Federal Reserve Chairman Jerome Powell.

Stocks rally on volatile trading ahead of Powell speech

Stocks climbed on Wednesday after a hesitant opening as traders weighed in on Covid developments in China and awaited a speech from Federal Reserve Chairman Jerome Powell.

The benchmark indicator for Hong Kong stocks initially declined and then rose during the day in volatile trading. Indices in mainland China fell slightly.

Futures for the US and Europe rose after the Wall Street close and ahead of Powell’s keynote on the economy and labor market. Traders are now waiting for further signs that the next Fed rate hike will drop to 50 basis points.

Treasury bonds rose slightly and the dollar indicator fell. The offshore yuan eased, rebounding slightly on Tuesday after factory and service activity in China contracted further in November due to Covid restrictions.

The World Equity Index rose in its second month, cutting its losses this year to around 18%. Bonds were also poised for monthly gains, along with 2022 losses almost on par with equities.


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The move in stocks and bonds saw their correlation this week at its highest level since 2012, putting pressure on traders and investors looking to hedge their portfolios by splitting their portfolios between the two asset classes.

The slight drop in stocks on Wall Street on Tuesday was due to technology companies.

Oil has risen for several days after industry data pointed to a significant reduction in U.S. crude inventories and traders waited for an OPEC+ meeting where countries could agree to cut production.

Gold posted a big monthly gain as the dollar tumbled as the Fed prepares to slow down its pace of interest rate hikes.


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