China stocks rocket higher

“Remember that the stock market is a manic depressive.” - Warren Buffett

 

 

HEADLINES

 

 

• Bank of England raises rates to 0.75%, less sure about future moves
• U.S. dollar hits lowest in week as investors gauge Fed policy, euro rises
• Gold bounces as dollar weakens, investors watch Ukraine-Russia talks
• Oil surges amid warnings of supply shortages
• Hong Kong’s Hang Seng index soars 7% as tech
• BoJ Preview: BBH
• SILVER Short Term: Downside favored

 

 

FOREX

 

 

Bank of England raises rates to 0.75%, less sure about future moves

 

The Bank of England raised interest rates on Thursday for a third meeting running, as expected, but softened its language on the need for further increases from here.

Eight out of nine members of the Monetary Policy Committee (MPC) voted to raise Bank Rate to 0.75% from 0.5%, following the U.S. Federal Reserve's decision on Wednesday to raise borrowing costs for the first time since the COVID-19 pandemic.

 

U.S. dollar hits lowest in week as investors gauge Fed policy, euro rises

 

The U.S. dollar fell on Thursday and hit its lowest in a week as investors digested the Federal Reserve's monetary policy outlook a day after the U.S. central bank's expected rate hike, while the euro rose as investors kept an eye on Russia-Ukraine talks.

The Fed's monetary policy turned hawkish with its quarter-percentage-point rate increase Wednesday and projection that the federal funds rate would reach a range of 1.75% to 2% by the end of 2022 and 2.8% next year, but the central bank did not deliver a tougher surprise that some investors might have been expecting.

 

 

COMMODITIES

 

 

Gold bounces as dollar weakens, investors watch Ukraine-Russia talks

 

Gold rose 1% on Thursday, supported by a retreat in the U.S. dollar and Treasury yields, with investors cautiously watching developments in peace talks between Russia and Ukraine.

With a weaker dollar and the Ukraine situation still in the background, people have started piling into gold, said Miguel Perez-Santalla, head of trading sales and marketing at Heraeus Metals Management in New York.

 

Oil surges amid warnings of supply shortages

 

Oil prices climbed over 7% on Thursday after the International Energy Agency (IEA) said three million barrels per day (bpd) of Russian oil and products could be shut in from next month and despite the U.S. Federal Reserve’s decision to raise interest rates.

The supply loss would be far greater than an expected drop in demand of one million bpd triggered by higher fuel prices, the IEA said in a report on Wednesday.

 

 

STOCKS

 

 

Hong Kong’s Hang Seng index soars 7% as tech

 

Shares in Asia-Pacific rose in Thursday trade as the Chinese markets continue to extend gains from a rebound, while the U.S. Federal Reserve announced its first rate hike in more than three years.

Hong Kong’s Hang Seng index led gains among the region’s major markets, surging 7.04% to close at 21,501.23 and erasing heavy losses from earlier in the week. On Wednesday, the benchmark index saw its best day since October 2008 as it rocketed 9%.

The Hang Seng Tech index soared 7.76% to 4,572.79, with Tencent up 6.27%, Alibaba jumping 12.46% and JD.com surging 15.85%.

 

 

ANALYSIS

 

 

BoJ Preview: BBH

 

“It’s clear from recent official comments that the bank is not too concerned about higher inflation as it is viewed as a temporary spike from energy prices. Instead, some have focused on weak wage growth as a major reason to remain dovish. We fully expect a dovish hold. The April 27/28 meeting should provide more clues to future policy, as FY24 will be added to the forecast horizon then.”

 

 

CHART

 

 

SILVER Short Term: Downside favored

 

Technical View: Short position below 25.8. Target 24.2. Conversely, break above 25.8, to open 26.2.

Comments: The pair breaks below support.

Source: Trading Central
 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

SOURCES

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/business/bank-england-raises-rates-075-less-sure-about-future-moves-2022-03-17/
https://www.reuters.com/business/yen-left-behind-fed-begins-hiking-2022-03-17/
https://www.cnbc.com/2022/03/17/gold-markets-us-federal-reserve-russia-ukraine-talks.html
https://www.cnbc.com/2022/03/17/oil-markets-iea-russia.html
https://www.cnbc.com/2022/03/17/asia-markets-us-fed-raises-rates-for-first-time-since-2018.html
https://www.fxstreet.com/news/boj-preview-forecasts-from-seven-major-banks-a-dovish-hold-202203171506