• Traders expect a quarter percentage point rate hike
  • US 10-year yields near three-year highs
  • Brent’s future down
  • Safe haven gold, falling US dollar

NEW YORK, March 16 (Reuters) – Global stock markets and U.S. Treasury yields rose on Wednesday as investors expected the Federal Reserve to hike U.S. interest rates and grew hopeful of a breakthrough in the ceasefire talks between Russia and Ukraine.

The Fed will likely end its ultra-loose pandemic-era monetary policy with a rate hike of at least 25 basis points to combat soaring inflation. Traders will also analyze the tone of the Fed’s policy statement and observe the details of projected economic conditions. Read more

Benchmark 10-year US Treasury yields hit their highest level in nearly three years, hours before the Fed’s decision was expected.

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Yields were last at 2.1777%. During the session, they reached 2.204%, the highest since May 2019.

“The quarter-point hike is already in the market, already known. What will affect the market is what the Fed ends up saying after the announcement, whether it looks hawkish or dovish” , said Michael Ashley Schulman, Chief Investment Officer. in Running Point Capital, California.

The MSCI World Stock Index (.MIWD00000PUS), which tracks stocks from 50 countries, gained 2.41%.

European stocks rose, rebounding from a loss in the previous session, as sentiment was buoyed by positive comments from Ukrainian and Russian officials on the prospects of a deal to end the three-week-old dispute.

The pan-European STOXX 600 index (.STOXX) rose 3.07%, while MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) closed up 5.1% overnight. the following day.

On Wall Street, the three major indexes were trading ahead of the Fed’s early rate hike announcement, led by stocks in the technology, financials and consumer discretionary sectors.

The Dow Jones Industrial Average (.DJI) rose 1.2% to 33,946.4, the S&P 500 (.SPX) gained 1.64% to 4,332.16 and the Nasdaq Composite (.IXIC) added 2.57% to 13,281.65.

“At this point, I think you have a lot of active investors and hedge funds looking for any news that would create a tradable bottom despite the dire global macroeconomic scenario of inflation, rising rates and a war. terrible between Russia and Ukraine,” added Schulman.

Oil rebounded across the board in another volatile session as traders reacted to peace talks and a surprising rise in US stocks. Read more

Benchmark Brent crude had hovered between $97.55 and $103.70 and was at $99.54 a barrel, down 0.37% early in the afternoon. U.S. West Texas Intermediate (WTI) crude rose 0.15% to $96.58.

The US dollar has slid further from nearly two-year highs hit last week, as hopes for peace in Ukraine pushed the euro higher. read more The dollar index fell 0.317%, the euro up 0.47% to $1.1002.

Safe-haven gold fell to more than two-week lows. Spot gold fell 0.5% to $1,908.83 an ounce, while US gold futures fell 0.76% to $1,913.80 an ounce.

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Reporting by Chibuike Oguh in New York; Editing by David Gregorio

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