Wall Street ends sharply higher on Wednesday after Fed Chairman Jerome Powell signaled that interest rate hikes will slow down in the next meeting. “The time for moderating the pace of rate increases may come as soon as the December meeting.” – Powell said.
German consumer prices in November slowed from the prior month while annual inflation in Spain also fell more than expected. Moving ahead, investors should closely monitor the release of Eurozone inflation data.
Oil futures recovered from the previous session's lows after Eurasia Group reported that OPEC+ will "seriously consider" a production cut next week. However, investors remain concerned over rising Covid-19 cases in China, which could dent demand for oil as travel is restricted.
Today the key focus will turn to the minutes from the latest Federal Reserve meeting as the investors look for clues on future rate hikes by the central bank. During the last meeting, United States Federal Reserve officials delivered their fourth straight 75 basis-point interest rate increase.
The dollar index, which tracks the currency against key rivals retreats back to below 107.50 on Tuesday Morning after the pair failed to break above the key resistance of 108.