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Rest of the world ex US stocks outperformance reinforced by a weaker USD

A weaker USD reinforces current bullish tone for stocks

Share this Major US stock indices have managed to stage a strong rebound to snap their respective two days of consecutive losses since Monday. The S&P 500, Nasdaq 100 and Dow Jones Industrial Average posted similar gains of around +0.90% with outperformance seen in the small-caps index, Russell 2000 that rallied by +2.35% to close at 2,239 after being the underdog for the past four weeks. Despite yesterday’s rally, the Russell 2000 is still below its intermediate range resistance of 2,280 that has capped previous rallies since 5 April. Yesterday’s up move seen in the US stock market was not triggered by any clear macro catalysts, a similar observation seen from the previous sessions where the overall market was down for two consecutive days despite most earnings reports exceed expectations; note that we are in the second week of US Q1 earnings reporting session. Strong market breadth statistics for yesterday as number of advancing stocks outpaced declining stocks by a ratio of

Nerves over high valuations, inflation outlook pressure Asian stocks

BENGALURU (Feb 24): Most Asian equities fell on Wednesday, shedding early gains, as investors continued to worry about overvalued emerging market assets and a higher inflation outlook even as the head of the US Federal Reserve pushed back on inflation concerns. Philippine s index saw the biggest fall in emerging Asia, shedding 1.2%, as sentiment remained weak after Covid-19 restrictions in its capital were extended earlier this week.  The Asia-ex Japan index eased 1%, reversing an earlier rise of 0.3%.  US Federal Reserve Chairman Jerome Powell soothed inflation concerns and reiterated an accommodative policy stance in a speech before Congress, saying the central bank would move carefully, patiently, and with a lot of advance warning before changing any policy settings.

Emerging Asian stocks fall on valuation concerns, high US yields

(Feb 24): Most Asian equities shed early gains to fall on Wednesday as persistent worries over steep asset valuations and the recent strength in US Treasury yields hit risk sentiment, with local bond yields clinging to multi-month highs. MSCI s broadest index of Asia-Pacific shares outside Japan deepened losses with a near 2% drop, while high-flying technology stocks in South Korea and Taiwan were among the region s biggest decliners. Sentiment in Philippines took a further hit, with stocks down nearly 1%, as Covid-19 restrictions were extended in the capital earlier this week. Elsewhere, US Federal Reserve Chairman Jerome Powell soothed inflation concerns and reiterated an accommodative policy stance in an overnight speech, but did not address potential risks from rising bond yields.

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