December 1, 2022
United States:
Stocks Cheered by Powell and China; Dollar Drops: Markets Wrap
Rising US stock futures signaled an extension of Wednesday’s hefty index gains fueled by China’s softer stance on Covid and confirmation of a slower rate-hiking pace from Federal Reserve Chair Jerome Powell. The dollar plumbed a three-month low.
S&P 500 contracts climbed 0.5%, a day after Powell’s comments helped the underlying benchmark close out November with a second month of gains for the first time in more than a year. Those on the tech-heavy Nasdaq 100 also advanced, after underlying gauge jumped 4.5% on Wednesday. European stocks rose to a six-month high.
Europe:
EU Closes In on $60 Price Cap for Russian Oil as Deadline Looms
European Union states are starting to coalesce around a plan to cap the price of Russian crude oil at $60 a barrel, their latest attempt to clinch an agreement before a Monday deadline, according to people familiar with the matter.
The bloc is also looking at a mechanism that would allow for regular evaluations and potential revisions of the price every two months from mid-January 2023, the people added. Two of the people said that there should be an agreement that any future resetting of the cap should leave it at least 5% below average market rates. They didn’t go into detail.
Asia:
Yen, Won Lead Asia FX Surge as Traders Gird For Slower Fed Hikes
Japan’s yen and Korea’s won spearheaded a surge in Asian currencies Thursday, as prospects for a slower pace of Federal Reserve rate hikes triggered broad weakness in the dollar.
The yen strengthened 1.1% to around 136.50 per dollar. The risk-sensitive won rose 1.5%, strengthening past the 1,300 level for the first time since August. The Bloomberg JPMorgan Asia Dollar Index climbed to a three-month high.
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