A look at the day ahead from Dhara Ranasinghe. Reassuring words from Federal Reserve chief Jerome Powell that rates will remain low for a long time means stock markets are rallying again.
Asian shares, excluding Japan, are up 1.6% .MIAPJ0000PUS , Japan's Nikkei is back above the 30,000-mark, European stocks are tipped to open higher and U.S. stock futures are up. And Reuters polls forecast the equity bullrun to continue at least another six months.
The Fed's dovish message is resonating in currency markets too, with the dollar languishing near three-year lows.
But....bond markets are still not playing ball. U.S. 10-year Treasury yields are up 3 bps at 1.42% US10YT=RR , near one-year highs. Investors clearly don't believe the Fed will be able to keep rates for as low as it would like. The view might be that inflation will be a bigger problem than anticipated
So U.S. yields are on course to end February with a 32 bps rise, the biggest monthly rise since late-2016 -- when Donald Trump's election win was encouraging reflation bets.
And so this morning brings fresh central bank angst over rising yields; ECB board member Isabel Schnabel is already out on the wires saying the bank will fight any big increases in inflation-adjusted interest rates. are "gamestonks" back? GameStop (NYSE: GME ) GME.N the videogame retailer at the heart of January's retail trader frenzy saw shares soar nearly 104% on Wednesday and this morning, its Frankfurt-listed shares have already jumped 85% developments that should provide more direction to markets on Thursday:
restores its dividend, reaffirms long-term profit goals. - Anheuser-Busch
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Reuters Poll: Global stock market outlook
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