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On Tuesday, global equities experienced a significant upswing. This surge was driven by the dovish remarks from officials at the Federal Reserve and the European Central Bank (ECB), which led to a decrease in bond yields. The MSCI’s global stocks gauge increased by 1.42% as a result of these events.
The US stock indices, including and , rallied due to the rise in long-term US treasury bond yields, suggesting a possible halt to short-term interest rate hikes. Notably, the yield on the 10-year treasury dropped. This dovish stance from central banks also led to rallies in euro zone bonds and US treasuries, including 10-year and 2-year treasuries.
European stocks also experienced a sharp rebound. The pan-European jumped 2%, while 100 and also performed well. Similarly, Asian markets closed higher, with positive performances from 225 and Australia’s . However, China’s fell by 0.7%.
Meanwhile, prices witnessed a slight dip due to escalating tensions between Israel and Hamas. The Israeli military has been conducting severe airstrikes on Gaza, while Hamas threatened to execute captives for each home hit. This geopolitical tension influenced market movements globally. As a result, US crude dipped 0.81% to $85.68 per barrel, while fell 0.83% to $87.42 per barrel.
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