AGL 5.27 Decreased By ▼ -0.23 (-4.18%)
ANL 8.45 Decreased By ▼ -0.04 (-0.47%)
AVN 75.82 Increased By ▲ 0.02 (0.03%)
BOP 5.15 Decreased By ▼ -0.09 (-1.72%)
CNERGY 4.41 Decreased By ▼ -0.01 (-0.23%)
EFERT 81.30 Decreased By ▼ -0.33 (-0.4%)
EPCL 49.29 Decreased By ▼ -0.41 (-0.82%)
FCCL 12.40 Decreased By ▼ -0.39 (-3.05%)
FFL 5.51 Increased By ▲ 0.01 (0.18%)
FLYNG 6.82 Increased By ▲ 0.09 (1.34%)
FNEL 4.68 Decreased By ▼ -0.02 (-0.43%)
GGGL 9.27 Increased By ▲ 0.85 (10.1%)
GGL 14.88 Increased By ▲ 0.93 (6.67%)
HUMNL 6.18 Increased By ▲ 0.10 (1.64%)
KEL 2.57 Increased By ▲ 0.01 (0.39%)
LOTCHEM 27.73 Increased By ▲ 0.08 (0.29%)
MLCF 23.57 Decreased By ▼ -0.22 (-0.92%)
OGDC 71.91 Increased By ▲ 0.81 (1.14%)
PAEL 15.13 Increased By ▲ 0.10 (0.67%)
PIBTL 4.83 Decreased By ▼ -0.07 (-1.43%)
PRL 15.66 Decreased By ▼ -0.32 (-2%)
SILK 1.07 Decreased By ▼ -0.03 (-2.73%)
TELE 8.85 Increased By ▲ 0.03 (0.34%)
TPL 7.34 Increased By ▲ 0.26 (3.67%)
TPLP 19.49 Increased By ▲ 0.23 (1.19%)
TREET 21.08 Increased By ▲ 0.23 (1.1%)
TRG 137.25 Increased By ▲ 0.65 (0.48%)
UNITY 16.30 Decreased By ▼ -0.25 (-1.51%)
WAVES 9.35 Increased By ▲ 0.10 (1.08%)
WTL 1.38 Increased By ▲ 0.03 (2.22%)
BR100 4,164 Increased By 6.3 (0.15%)
BR30 15,350 Increased By 10.3 (0.07%)
KSE100 41,698 Increased By 46.7 (0.11%)
KSE30 15,402 Increased By 22.3 (0.15%)
Follow us

LONDON: Global stocks were little changed on Wednesday as investors kept their powder dry ahead of an expected interest rate hike by the U.S. Federal Reserve, whose accompanying statement will help determine next moves in financial markets.

The MSCI global stocks index was down 0.1%, while the STOXX index of European companies eased 0.4%.

The 10-year U.S. Treasury yield was just below the closely watched 3% level, while oil prices bounced as the European Union proposed more sanctions on Russia in response to its invasion of Ukraine, including an oil embargo to be phased in by year-end.

Markets expect the Fed to raise rates by half a percentage point at 1800 GMT - the most in a single day since 2000 – to curb inflation, and to detail plans to reduce its $8.9 trillion balance sheet.

The U.S. central bank raised its policy interest rate by 25 basis points in March.

Oil slips 1% as China lockdowns face proposed EU Russia oil ban

"The bigger question is what will the Fed's guidance be for rate hikes next month. Will we get another 50 basis points in June, and what's the timeline for balance sheet reduction?" said Michael Hewson, chief markets analyst at CMC Markets.

The global monetary tightening cycle has reached a symbolic milestone, with yields on German, British and U.S. 10-year government debt topping 1%, 2% and 3% respectively, levels not seen in years. That has in turn raised borrowing costs for businesses and households.

The Bank of England is also expected to lift UK interest rates on Thursday by a quarter of a percentage point, which would be its fourth hike in a row to quell surging prices.

"U.S. markets are just about hanging on and how hawkish the Fed is likely to be is fairly key. There is a risk that the Fed could under-deliver and pull yields lower," Hewson said.


On Tuesday, the Dow Jones Industrial Average closed up 0.2%, the S&P 500 gained 0.48% and the Nasdaq Composite added 0.22%.

Many Chinese and Japanese stock markets were closed overnight, offering little direction for European investors.

Crude oil prices gained as the EU gave details of its planned ban on Russian oil imports and other new sanctions targeting Russia's top lender Sberbank and Russian broadcasters, which would be blocked from European airwaves.

Brent crude futures were up 3.6% at $108.77 a barrel. West Texas Intermediate crude futures gained% to 3.7% to $106.17.

Australia's central bank raised its key rate by a bigger-than-expected 25 basis points, lifting the Aussie dollar as much as 1.3% and hitting local shares.

The yield on 10-year Treasury notes was slightly firmer at 2.973%, after breaching the key milestone of 3% for the first time since December 2018 on Monday.

The dollar index was slightly firmer, along with the euro,. Gold also firmed, with bitcoin gaining 2.5% to $38,701.


Comments are closed.

SAMIR SARDANA May 05, 2022 12:38am
As I said on on the 3rd of May,2022 "US Fed rate hike will have no impact on Oil which will keep rising & will rise on the DAY OF THE HIKE & THEREAFTER ALSO !" FED HIKED TODAY ! OIL IS UP 5% TODAY AND WILL BE UP TOMORROW ! 9TH OF MAY - PUTIN AND IRAN N-DEAL -- WILL PUSH UP OIL EVEN HIGHER.dindooohindoo
thumb_up Recommended (0)

Investors keep power dry ahead of Fed, crude jumps

Supreme Court declares new Reko Diq mine deal legal

Google opens liaison office in Pakistan, registers with SECP

Croatia stun Brazil in penalty shoot-out to reach World Cup semi-finals

Nawaz’s return will decide who wins elections: Rana Sanaullah

Rupee depreciation continues, settles at 224.4 against US dollar

Sindh police take Azam Swati into custody from Quetta

Putin says Russia may cut oil production over West’s price cap

At $561.16bn, India's forex reserves rise for 4th week, hit over 3-month high

Pakistan Refinery says will shut down for 'approximately 20 days'

Oil set for 10% weekly drop as demand worries dominate