By Chibuike Oguho
New York (Reuters) – Wall Street’s three main stock indices rose Tuesday, a day before an expected rate hike by the US Federal Reserve, while oil prices fell 7% in hopes of ending the conflict in Ukraine.
Investors expect the US central bank to raise interest rates by at least 25 basis points for the first time in three years amid rising prices. Traders will also be watching the Fed closely for details on how it plans to end its bond-buying program.
Ahead of the Fed’s meeting on Wednesday, 10-year bond yields fell from a two-year high and were most recently at 2.1544%, after previously rising to 2.169%, the highest since June 2019.
“I think the big event this week will be the Fed to discuss what they’re going to do with the portfolio and how quickly they’ll move. The short-term expectation will, of course, be the portfolio increase by a quarter of a percent,” he said. said Tom Plumb, portfolio manager at Plumb Balanced Fund in Wisconsin.
On Wall Street, the benchmark recovered, having fallen about 2.4% in the previous three sessions, on the back of technology, consumer discretionary and healthcare.
The S&P 500 rose 1.82% to 33,544.34, the S&P 500 gained 2.14% to 4,262.45 and the added 2.92% to 12,948.62.
“What you’re seeing is a revival of relief in a bear market. There is hope and expectation that something will resolve in Ukraine,” Plumb added.
European stocks, which had recovered in recent sessions, fell after China reported a jump in coronavirus cases and new restrictions. The ongoing war in Ukraine also weighed on European equities, despite ongoing ceasefire negotiations and some positive signs of a breakthrough.
The pan-European index lost 0.28% and the MSCI index of stocks around the world gained 0.94%. MSCI’s broadest index of Asia-Pacific stocks outside of Japan closed 2.73% overnight.
Oil prices fell more than 6% on Tuesday to their lowest point in nearly three weeks as fears of a supply disruption in Ukraine diminished hopes for peace in Ukraine and rising COVID-19 cases in China fueled demand.
futures plunged 6.5% to $99.91 a barrel, while US West Texas Intermediate (WTI) crude fell 6.4% to $96.44 a barrel. Both contracts fell below $100 a barrel for the first time since late February.
The US dollar lost value against the euro and other major currencies after oil prices fell and ahead of the Fed’s expected rate hike. The exchange rate fell 0.043%, while the euro rose 0.04% to $1.0943.
Safe-haven gold fell nearly 1% to a two-week low. fell 1.8% to $1,915.48 an ounce, while the US fell 1.55% to $1,929.30 an ounce.Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data.
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This post Wall Street Shares Rise, Oil Prices Fall Ahead of Fed Meeting was original published at “https://www.investing.com/news/economy/asia-stocks-skid-as-ukraine-war-chinas-covid-surge-weigh-2784544”