- Aggressive plans of the Fed to tack inflation have favored the positive market sentiment.
- Chinese markets have continued their winning streak despite rising Covid-19 cases and oil prices.
- Going forward, US NFP will entertain the global markets.
Markets in the Asian domain are gaining sharply higher as risk-on impulse got triggered after the Federal Reserve (Fed) announced May’s monetary policy on Wednesday. The announcement of a jumbo rate hike and roadmap of balance sheet reduction was already forecasted therefore, the risk-sensitive assets found bids from the responsive buyers and moved firmly higher.
At the press time, Shanghai surges 1.11%, Hang Seng jumps 0.65%, and Nifty50 gained more than 1%. Japan’s markets are still closed on account of Children’s Day. Japan’s bourses were also closed on Wednesday on account of Greenery Day.
Chinese markets are rallying higher on Thursday after remaining closed in the last four trading sessions. The dragon economy has ignored the impact of surging oil prices after Europe indicated an embargo on Russian oil within six months. However, the European Union (EU) has yet not unveiled its suppliers who will address the daily demand of 3.5 million barrels. Also, the resurgence of the Covid-19 in China’s financial hub Shanghai and the capital Beijing has failed to exhaust the momentum of bulls.
Meanwhile, the US dollar index (DXY) has witnessed some exhaustion in its downside momentum. The DXY is oscillating in a narrow range of 102.36-102.67 in the Asian session. It won’t be wrong to state that the DXY has been established below 103.00 firmly. Post the hangover of the Fed’s policy, investors are shifting their focus towards the release of the US Nonfarm Payrolls (NFP), which are due on Friday. The US NFP is seen at 394k against the previous figure of 431k.