A powerful earthquake struck Turkey and Syria, leaving a devastating trail of destruction and death. With over 7,900 fatalities and counting, rescue workers are battling harsh winter conditions to save those trapped in the rubble of collapsed buildings. Aid officials are particularly concerned about the situation in Syria, which is already grappling with a humanitarian crisis after years of civil war. Turkish President Tayyip Erdogan has declared a state of emergency in 10 provinces, as frustrated residents voice anger at what they see as a slow and inadequate response from the authorities, even though there was already a simulation run back in November for the exact situation. The magnitude 7.8 quake, followed by a second nearly as powerful, has toppled thousands of buildings, injured tens of thousands, and left countless people homeless.
EQUITY
US stocks closed higher on Tuesday following volatile trading. Fed Chair Jerome Powell's comments on taming inflation reignited investor optimism for a less aggressive monetary policy. The energy, technology, and communication services sectors led the gains on the S&P 500, which rose 1.29%.
GOLD
Gold prices bounced back Wednesday after the Fed's mixed monetary policy signals. The spot price rose 0.22% to $1,871.885 after reaching a one-month low last week. Gold's outlook for the year remains positive as traders anticipate a shift from the Fed's hawkish position.
OIL
Oil prices surged as the dollar weakened following Fed Chair Powell's interest rate remarks. Brent crude climbed 3.47% to $84.08 per barrel, and WTI rose 4.23% to $77.55 per barrel. Investors are waiting for confirmation from the US Energy Information Administration after weekly inventory data showed a drop of 2.2 million barrels in crude stocks.
CURRENCY
The US dollar struggled in Asian trade on Wednesday after slipping in the previous session during Powell's speech. Sterling rose 0.04% to $1.20513, and the euro was 0.08% higher at $1.07319. The markets and the central bank are now data-dependent and less sensitive to Fed officials.