U.S. futures erase losses as dip buyers come back
BNN Bloomberg
Asian stocks may come under pressure Thursday after U.S. Federal Reserve Chair Jerome Powell signaled a March interest-rate liftoff and left open the possibility of hikes at each policy meeting. Treasuries slid, the dollar jumped and U.S. shares were mixed.
U.S. futures wiped losses, with dip buyers back in action after a selloff sparked by a hawkish U.S. Federal Reserve.
In Europe, retail and travel stocks dragged down benchmark indexes, while bank shares rallied after Deutsche Bank AG raised its outlook. Contracts on all three major U.S. gauges turned positive, with those on the Nasdaq 100 recovering from a slump of as much as 2.2 per cent.
Tesla Inc. dropped in premarket trading after warning of supply-chain issues, while Intel Corp. fell on a disappointing forecast.
Fed Chair Jerome Powell on Wednesday endorsed interest-rate liftoff in March and opened the door to more frequent, potentially larger hikes than expected. While a rally on Wall Street fizzled after the meeting, the rapid turnaround in futures indicates buy-the-dip sentiment remains strong after a volatile week.
The Treasury yield curve shrank to the flattest since 2020 after the Fed meeting. Two-year Treasuries extended declines Thursday even as longer-dated ones rebounded.
Oil fell from a seven-year high, while the dollar rose. A gauge of Asia-Pacific shares fell to a 14-month low.
