EQUITIES
Shares in Asia-Pacific were higher in Thursday trade, with European markets also expected to follow.
Japan's Nikkei rose 1.75% and was heading for its best day in two weeks as investors reacted to the Bank of Japan’s latest monetary policy decision. Elsewhere, South Korea’s KOSPI advanced 1.08% while the S&P/ASX 200 in Australia gained 1.32%.
Mainland Shanghai Composite added 0.43% while in Hong Kong, the Hang Seng index edged 1.11% higher.
European stocks are expected to open higher on Thursday as investors continue to monitor Russia’s next move when it comes to its gas supplies to Europe. Fears persisting over Ukraine and energy supplies to the region following Russia’s decision to halt gas supplies to Poland and Bulgaria.
OIL
Oil wobbled lower on Chinese demand concerns. Authorities in Beijing are continuing to crack down on COVID-19 outbreaks and trying to avert the city-wide lockdown that has shrouded Shanghai for a month.
Meanwhile adding support to the market are concerns about tight worldwide energy supply following Russia's invasion of Ukraine and subsequent sanctions slapped on Moscow by the U.S. and its allies. Russian energy giant Gazprom said on Wednesday it had halted gas supplies to Bulgaria and Poland.
Brent crude futures fell 0.72%, to $104.39 a barrel, and U.S. WTI crude futures fell 1.05%, to $101.07 a barrel.
CURRENCIES
Treasuries were steady on Thursday, nursing small Wednesday losses, with two-year yields at 2.5970% and benchmark 10-year yields at 2.836%. The benchmarks firmed as investors awaited greater clarity of the "restrictive" policy the Fed plans to pursue next week to combat inflation by curbing economic growth.
The dollar meanwhile continued its surge, on course for its biggest monthly gain since January 2015. The dollar index rose as high as 103.70 on Thursday, its highest in five years. A further push above 103.82 would see it test levels not visited since late 2002. It was last at 103.422.
Japan doubled down on anchoring bond yields, collapsing the yen and drove the dollar toward its highest levels in decades. The yen dropped to a 20-year low and after the BoJ vowed to buy unlimited amounts of 10-year bonds daily to defend its yield target. The yen was last at 130.306 per dollar. The BoJ's move was in stark contrast with investors' conviction that U.S. interest rates are about to start going up fast and it jolted the dollar higher across majors.
GOLD
Gold prices fell to a 10-week low on Thursday, as an elevated U.S. dollar hurt demand for greenback-priced bullion, while an impending Federal Reserve interest rate hike also dented the metal's appeal as an inflation hedge.
Spot gold was down 0.2% at $1,882.50 per ounce, its lowest since Feb. 16. U.S. gold futures slipped 0.3% to $1,882.60.
Spot silver dipped 0.1% to $23.26 per ounce, platinum eased 0.4% to $914.17, while palladium gained 1.2% to $2,228.75.
ECONOMIC OUTLOOK
Global stocks steadied on Thursday, taking comfort from company earnings report overnight, though uncertainty about the economic fallout of war in Ukraine, highlighted by Russia's halt on gas supply to Poland and Bulgaria on Wednesday, and lingering lockdowns in China kept markets anxious.
Russia on Wednesday cut the flow of natural gas to Bulgaria and Poland for rejecting its demand to pay in roubles, taking direct aim at European economies, leading investors to sell euros and snap up U.S. dollars.
In another busy day for earnings in Europe, Sanofi, TotalEnergies, HelloFresh, Banco Sabadell, Barclays, Sainsbury’s, Standard Chartered and Unilever are among the companies reporting Thursday. For the U.S., earnings from Twitter, Comcast, Merck, Caterpillar, Amazon, Apple, Intel, Domino's Pizza and PayPal are among those due today.
