Macro Scenes:
- Wall Street pared gains: The US stock markets finished marginally higher but pared early gains as the Fed-induced rally lost some steam. While the Dow rose further, hitting a new high, mega-cap techs were mostly down. The Real Estate sector has been the biggest beneficiary of the Fed’s pivot, up 6% in the past two days. The US 30-year mortgage rate fell below 7% for the first time since August.
- USD tumbled: The US dollar index deepened losses, down 0.9% to below 102 for the first time since the beginning of August. The ECB and BOE kept their interest rates unchanged but reinstated the necessity to maintain the restrictive policy. The relatively hawkish stance strengthened the Eurodollar and the British Pound significantly against the USD, which contributed to the decline of the king dollar.
- 10-year US Treasury yield under 4%: The US bond yields continued to slide one day after the Fed’s pivot signals. The 2-year bond yield slipped to the lowest since June.
- Crude oil jumped: Oil prices rebounded for the second straight trading day as a weakened USD lifted commodity markets. The much larger-than-expected US inventory data fueled the oil market’s initial comeback on Wednesday. An oversold market can also be a key factor that causes a rebound.
- Asian markets to open mixed: Equity markets across Asia were boosted by the Fed’s pivot tone on Thursday. The Chinese stock markets saw a potential bottom reversal pattern, and the Australian extended a four-day winning streak. ASX 200 futures were up 1.65%, the Hang Seng Index futures rose 1.07%, and Nikkei 225 futures fell 0.73%.
