Markets gain after Fed's Powell backed quarter point rate hike - 3.3.2022

The Dollar weakening has reversed currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.05% Wednesday despite the Automatic Data Processing, Inc. report US private sector employment rose more than forecast in February.

GBP/USD reversed its sliding while EUR/USD ended little changed on Wednesday as Eurostat reported euro area annual inflation jumped to 5.8% in February from 5.1% in January. Pound is higher against the Dollar currently while euro is down. Both USD/JPY and AUD/USD reversed their sliding yesterday with the Australian dollar higher against the Greenback currently and yen lower still.

The US stock index futures are up currently ahead of the Fed chair Powell’s semi-annual testimony before the Senate Banking Committee at 16:00 CET. The three main US stock indexes booked gains ranging from 1.6% to 1.9% Wednesday.

European stock indexes are mixed currently after ending higher Wednesday with oil and gas shares leading gains. Asian stock indexes are mostly up today with Nikkei leading gains while markets in China are weighed by Caixin report service sector expansion slowed more than expected in February.

Brent is extending gains currently. Prices gained Wednesday as the Organization of the Petroleum Exporting Countries and allies including Russia stuck to their decision to boost output by just 400,000 barrels per day. Furthermore White House on Wednesday said it was "very open" to the possibility of targeting Russian oil and gas with sanctions. The US oil benchmark West Texas Intermediate (WTI) futures jumped 7% to highest settlement since May 2011 and is higher currently. Brent crude rallied 7.6% to $112.93 a barrel on Wednesday.