The CSX Index is currently at 524.87 Points up 1.03 Points or 0.20%
The Daily Exchange Rate: is 4,050KHR to the USD$.
STOCKS RISE, U.S. YIELDS SLIP AS MARKETS AWAIT FED RATE HIKE.
A gauge of global equity markets edged higher on Tuesday while 10-year U.S. Treasury yields slid from the 3% level as investors remained cautious, expecting the Federal Reserve to hike rates by the most in a single day since 2000 to curb inflation.
Investors expect the Fed to hike rates by half a percentage point on Wednesday, and to detail plans to reduce its $8.9 trillion balance sheet. The U.S. central bank raised its policy interest rate by 25 basis points in March.
MSCI's all-country world index (.MIWD00000PUS) rose 0.39% and the pan-European STOXX 600 index (.STOXX) gained 0.53% the day after a "flash crash" in Nordic markets caused by a trade involving a single Citigroup sell order.
The Dow Jones Industrial Average (.DJI) closed up 0.2%, the S&P 500 (.SPX) gained 0.48% and the Nasdaq Composite (.IXIC) added 0.22%.
Nine of the S&P 500's sectors rose, led by a 2.87% gain in energy (.SPNY), while oil and gas (.SXEP) jumped 4.1% in Europe to lead markets there.
Overnight in Asia, Australia's central bank raised its key rate by a bigger-than-expected 25 basis points, lifting the Aussie dollar as much as 1.3% and hitting local shares.
The Bank of England is expected to raise rates on Thursday for the fourth time in a row.
DOLLAR DIPS BEFORE FED, AUSSIE GAINS AFTER RATE HIKE.
The U.S. dollar slipped against a basket of currencies on Tuesday, as investors evaluated how much of the Federal Reserve's expected move to hike rates this week and beyond was already priced in.
Fed funds futures traders expect the Fed’s benchmark rate to raise to 2.89% by year-end, from 0.33% now.
The dollar index was last at 103.43, down 0.12% on the day, after reaching 103.93 on Thursday, the highest since December 2002.
The dollar index hit a 20-year high last week on expectations the U.S. central bank will be more aggressive than peers in tightening policy, with inflation running at its fastest pace in 40 years.
The Aussie dollar jumped after the Reserve Bank of Australia raised its cash rate by a surprisingly large 25 basis points to 0.35%,
The Aussie dollar was last up 0.60% at $0.7094.
The euro rose to $1.0526, up 0.16%, after dropping to $1.0470 last Thursday, the lowest since January 2017.
OIL CLIMBS 1% AFTER U.S. CRUDE STOCKS SIGNAL TIGHTER SUPPLY.
Oil prices rose at the start of Asian trade on Wednesday after industry data showed drawdowns in U.S. crude and fuel stockpiles, raising supply concerns and offsetting worries about slowing demand from top importer China.
Brent crude futures rose 89 cents, or 0.9%, to $105.86 a barrel by 0223 GMT. West Texas Intermediate crude futures rose 97 cents, or 1%, to $103.38 a barrel.
In the United States, crude and fuel stocks fell last week, according to market sources citing American Petroleum Institute figures. Crude stocks fell by 3.5 million barrels for the week ended April 29.
During the previous session, demand worries stemming from China's prolonged COVID-19 lockdowns that curtailed travel plans during the Labour Day holiday season caused prices to fall by more than 2%.
EUROPEAN 'FLASH CRASH' WAS LATEST OF MANY GLOBALLY OVER THE PAST DECADE.
The sudden drop in European shares on Monday following an erroneous trade in the Nordic markets is the latest example of a "flash crash" in which the price of an asset quickly drops before bouncing back.
The term "flash crash" became part of the market's lingo after the Dow Jones Industrial Average cratered around 1,000 points in May 2010, wiping out nearly $1 trillion in shareholder value before mostly rebounding in a matter of minutes.
Here are some examples of recent flash crashes:
Dec. 4-5, 2021: Cryptocurrency bitcoin crashed, wiping out a fifth of its value and leading to $2 billion worth of positions being liquidated.
Feb. 25, 2021: The prices of Treasury securities dropped sharply amid strained liquidity conditions, before recovering within about an hour.
Aug. 26, 2019: The Turkish lira tumbled as investors cut risk exposure and briefly boosted the safe haven yen against the lira.
Jan. 3, 2019: Major currencies experienced a flash crash against the yen, driven primarily by technical, not fundamental, factors.
Oct. 7, 2016: Sterling lost as much as 10% of its value in just a few minutes of trading, fueled by concerns about the vulnerability of the currency and other British assets to Brexit.
In 2016, a London-based trader was convicted of manipulating the futures market in a way that contributed to the 2010 flash crash.
Aug. 24, 2015: U.S. equity markets and equity-related futures markets experienced unusual price volatility, sending the SPDR S&P 500 ETF Trust down 7.8% five minutes after the market opened. The ETF recovered its losses within the next five minutes.
Oct. 15, 2014: The market for U.S. Treasury securities experienced high levels of volatility and Treasury futures prices fell rapidly amid diminished liquidity. The incident sparked a regulatory investigation. While that found no single cause, it noted record trading volumes, a decline in order book depth, and changes in order flow that day that may have contributed to the crash.
May 4, 2010: Unsettled market conditions combined with a massive sell order for a popular futures security sent the Dow plunging around 9% in a matter of minutes before rebounding.
