Stocks and US futures are rising, while Treasury yields are falling.
Markets Wrap Up in Advance Investors are getting a break from the brunt of the cross-asset selloff.
The prospect of monetary tightening raises doubts about how long stability can persist.
Oil prices rose slightly, while metal prices, such as copper, were swayed by concerns about demand prospects amid slowing global growth.
In Asia on Tuesday, stocks rose, US equity futures rose, and Treasuries fell as investor morale improved after last week's global stock market crash.
The MSCI Asia-Pacific index rose more than 1%, snapping an eight-day losing streak, with Japanese stocks leading the way. As traders considered the potential impact of Covid outbreaks, China became more subdued.
The benchmark 10-year yield fell to around 3.28 percent as a result of the dip in Treasuries. Further bond volatility, as a result of the Federal Reserve's determination to keep interest rates high in order to keep inflation under control, might rock global markets once more.
Australian yields have reversed their upward trend, according to the central bank. Governor Philip Lowe said more interest rate hikes are likely, but he downplayed expectations for a 75-basis-point increase in July.
The dollar fell, and the yen hovered near a 24-year low, as the difference between a super-dovish Bank of Japan and a hawkish Fed weighed on the currency.
"There may be a narrative that we've hit a bottom, that we're oversold, that the Fed is taking inflation seriously, and that might be modestly bullish in the interim," Frances Stacy, director of strategy at Optimal Capital, said on Bloomberg TV.
However, the longer-term outlook remains bleak for investors. Former Treasury Secretary Lawrence Summers suggested that the nation's jobless rate would need to increase over 5% for a continuous period to restrain price pressures, while St. Louis Fed President James Bullard warned that US inflation expectations may "become unmoored" without real Fed action.
President Christine Lagarde of the European Central Bank previously announced that policymakers intend to hike interest rates in July and September, indicating that concerns about financial market tensions aren't deterring the fight against inflation.
Crude oil rose and gold fell in other markets. As cryptocurrencies regained their footing after recent turmoil, Bitcoin climbed near $21,000.
How will key asset classes fare in the second half of this year? We're re-running MLIV's December 2022 asset poll to examine if street perceptions have changed in the wake of the recent instability and volatility. To participate anonymously, click here.
This week's shows to watch:
In his semi-annual Senate testimony, Fed Chair Jerome Powell, Wednesday.
Minutes of the Bank of Japan from April, Wednesday.
Powell's testimony before the US House of Representatives Thursday.
Initial jobless claims in the United States, Thursday.
PMIs for the Eurozone, France, Germany, the United Kingdom, and Australia Thursday.
Economic Bulletin of the European Central Bank, Thursday.
Consumer sentiment in the United States, according to the University of Michigan. Friday
On Friday, RBA's Lowe will speak on a panel.
The following are some of the most significant market movements:
Stocks
As of 7:01 a.m. in London, S&P 500 futures were up 1.6 percent.
Futures on the Nasdaq 100 index increased by 1.6 percent.
The Topix index in Japan increased by 2.1 percent.
The S&P/ASX 200 Index in Australia rose 1.3 percent.
The Kospi index in South Korea increased by 0.8 percent.
The Hang Seng Index in Hong Kong increased by 1.4 percent.
The Shanghai Composite Index in China declined by 0.6 percent.
Futures on the Euro Stoxx 50 index increased by 0.6 percent.
Currencies
The Bloomberg Dollar Spot Index dropped 0.1%.
The euro was up 0.1 percent at $1.0519.
The yen was trading at 135.05 per dollar.
The yuan was trading at 6.6976 per dollar offshore.
Bonds
The yield on the 10-year US Treasury note increased five basis points to 3.28 percent.
The 10-year bond yield in Australia was 4.07 percent.
Commodities
The price of West Texas Intermediate crude oil increased by 1.8 percent to $111.52 a barrel.
The price of gold declined 0.2 percent to $1,834.52 per ounce.
