The chairman of the Federal Reserve (Fed), Jerome Powell finally agreed with the market's wishes when he expressed the need to slow down the pace of interest rate increases 'as early as December' in his comments yesterday.
In contrast to his previous hawkish comments, the latest statement clearly eased investors' concerns despite Powell's underlining that inflation is still high and the central bank has no plans to end policy tightening.
Horizon Investment Services executive Chuck Carlson commented, it has given 'new breath' and clarity on the prospect of rate hikes, further giving positive value to equities in the short term.
The good news has given risk assets an advantage while pushing down the greenback and Treasury yields shortly after Powell's comments.
US equities closed in a rally with the Dow Jones Industrials up 2.18% at 34,587.77, the S&P 500 up 3.09% at 4,080.11 and the Nasdaq Composite up 4.41% at 11,468.00.
All three major indexes recorded their 2nd best monthly readings with the S&P up 5.4%, the Dow Jones up 5.7% and the Nasdaq up 4.4%.
MSCI's gauge of global shares rose 2.47%, up 7.9% in November, the highest monthly level since the same period in 2020.
The performance continued into the Asian trading session with Japan's Nikkei 225 up 1.13%, Topix up 0.25%, South Korea's Kospi up 0.77% and Australia's S&P/ASX 200 up 0.82%.
On the opposite side, the benchmark 10-year note was down 12.6 basis points at 3.622% from 3.748% while the 30-year bond was down 4.7 basis points at 3.7546% from 3.802% and the 2-year note was down 13.6 basis points at 4.337% from 4.473%.
The dollar index also fell with the greenback down 0.795% while the Euro was up 0.75% at $1.0404, the Yen was up 0.47% against the dollar at ¥138.07 and Sterling was up 0.79% at $1.2048.
