Oil Stocks- Oil prices hit a two-year high, Asian stocks rebounded
Asia-Pacific stock markets jumped after Wall Street rebounded, and oil prices rose to their highest level in two years, as the signal that the Federal Reserve will continue to support the economic recovery from the coronavirus pandemic reassure investors.
In Asian trading on Tuesday afternoon, Japan’s Topix Index rose 3.1%, and Australia’s S&P/ASX 200 Index rose 1.8%. India’s benchmark Sensex index rose 0.8% to a record level, while China’s CSI 300 index rose 0.5%.
These moves followed U.S. stocks rebound On Monday, the S&P 500 index closed up 1.4%.U.S. stocks Fell last week Prior to this, the Fed switched to a tougher tone, raising concerns that interest rate hikes might undermine the global economic recovery.
But market sentiment on Monday was boosted by more moderate comments from Federal Reserve Chairman Jay Powell. Powell said in a speech prepared before Congress on Tuesday that the Fed “will do everything we can to support the economy as long as it needs to complete the recovery.”
John Williams, President of the Federal Reserve Bank of New York, Also said The US economy is not yet ready for the central bank to start withdrawing its huge monetary support.
Jean Boivin, head of the BlackRock Investment Institute, said that “the new outlook for the Federal Reserve will not soon be translated into a significant increase in policy interest rates.”
“We may see market volatility… but we advocate maintaining investment and dealing with any turbulence,” Boivin added.
S&P 500 index futures rose 0.2% in Asian trading on Tuesday, while London’s FTSE 100 index futures rose 0.3%.
Prices of commodities that were hit hard by concerns about the global economic outlook last week also rose. The international oil benchmark Brent crude oil rose slightly by 0.3% to US$75.14 per barrel, breaking the US$75 mark for the first time since April 2019.
Brent is Up by more than 50% This year, the strong demand is highlighted before the OPEC+ meeting next week.
Bitcoin stabilizes after a sharp drop caveat The People’s Bank of China said on Monday that the country’s state-owned banks and payment platforms must “investigate and identify” accounts that facilitate cryptocurrency transactions and block all such transactions.
The cryptocurrency rose 1% to $32,881 on Tuesday, but still fell 6.5% this month.
The bond market stabilized after yields were inversely proportional to prices, and soared on Monday as investors abandoned the security of government bonds and reinvested in the stock market. In Asian transactions, the 10-year U.S. Treasury bond yield stabilized at 1.492%.