Asia stocks mixed as Fed looms large, Dollar weakens
The dollar retreated slightly on Wednesday, giving back some of its gains from the previous day, while Asian markets showed a mixed performance as investors weighed the possibility of a significant Federal Reserve interest rate cut later in the day.
After a strong rally on Tuesday, the U.S. currency dropped against the yen, while the euro made gains to recover most of its previous losses.
The likelihood of a 50 basis points cut by the Fed fluctuated in Asia, starting the day at 63% and then rising back to 65% by early morning.
Japanese Stocks saw strong gains, erasing losses from the previous day, while Chinese and Taiwanese markets opened flat or slightly lower. Australia’s benchmark remained stable.
Stocks in Hong Kong and South Korea were closed for holidays, while Wall Street finished almost unchanged on Tuesday, with the Nasdaq and Dow reaching record highs at one point.
The dollar weakened against the yen, but the euro strengthened slightly. The eased slightly, while short-term Treasury yields continued to rise.
Gold prices rose slightly after falling from an all-time high, while crude oil prices stayed steady amid escalating tensions in the Middle East.
Hezbollah vowed retaliation against Israel after explosions in Lebanon, while talks in Libya aimed at resolving the Central bank crisis did not reach a final agreement.
Oil futures and prices edged down in the latest trading session.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.