EQUITIES
Asia-Pacific markets were in positive territory on Tuesday, with Japanese stocks leading gains. The Nikkei 225 trading 2.38% higher while the KOSPI in South Korea was trading 1.08% higher. Australia’s S&P/ASX 200 rose 1.25%.
Hong Kong’s Hang Seng index climbed 1.51%, and the mainland Shanghai Composite marginally down by 0.18%.
U.S. markets are set to return to trade on Tuesday after a holiday on Monday. The major averages last week suffered their 10th losing week in 11 on fears that the central bank will hike rates aggressively to tame inflation at the risk of causing an economic downturn. The S&P 500 dropped 5.8% last week for its biggest weekly loss since March 2020, dipping deeper into bear market territory.
European markets also set to trend higher today, following positive global sentiment.
OIL
Oil prices rose on Tuesday, clawing back more of last week's losses as the focus returned to tight supply of crude and fuel products versus concerns about a recession hitting demand down the track.
The Brent crude futures rose $1.11, or 0.97% to $115.32 a barrel, adding to a 0.9% gain on Monday. The benchmark contract fell 7.3% last week in its first weekly fall in five.
The U.S. WTI crude futures rose to $110.16 a barrel, up $0.92, or 0.84%, from Friday's close. There was no settlement on Monday, which was a U.S. public holiday. WTI dropped 9.2% last week.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, eased slightly to 104.388.
In bond markets, the yield on US benchmark 10-year treasury notes was 3.288%, up a little from last Friday's close. Last week's peak of 3.495% was the 10-year yield's highest since 2011 and came the same day the Fed raised interest rates by a massive 75 basis points.
The cryptocurrency bitcoin rebounded after falling below its 2017 high over the weekend. The bitcoin last rose 4.25% to around $20,912. But it has still lost for about 55% of its value this year and 35% this month alone in the cryptocurrency sector's latest meltdown.
GOLD
Gold prices were traded rangebound on Tuesday, as investors kept a keen eye on posturing from major central banks on interest rate hikes for a clearer outlook for bullion.
Spot gold was up 0.2% at $1,834.70 per ounce, while U.S. gold futures slipped 0.2% to $1,837.00.
Spot silver rose 0.5% to $21.68 per ounce, platinum climbed 0.7% to $937.88, and palladium gained 0.7% to $1,859.40.
ECONOMIC OUTLOOK
Asian stocks mostly traded higher on Tuesday, supported by renewed buying of selected heavyweights, in line with positive sentiment on overnight European markets. The rebound in positive sentiment comes after global market turbulence as investors assessed the prospect of more aggressive Federal Reserve rate hikes and rising chances of a recession.
The U.S. Fed last week approved its largest interest rate increase in more than a quarter of a century to try and stem a surge in inflation. The Bank of England also implemented its fifth rate rise in a row while the European Central Bank announced that it plans to create a new tool to tackle the risk of euro zone fragmentation.
Fed Chair Jerome Powell will deliver a semi-annual monetary policy testimony before the Senate Banking Committee and the House Financial Services Committee later this week on Wednesday and Thursday respectively.
