China disruptions are likely to persist as authorities stick to zero-Covid policy, despite the rising anger and growing defiance of the government measures.
Benchmark indexes closed higher in a holiday shortened week and investors looked ahead to the release of inflation data next week. European markets brace for another large-sized rate hike next week.
After the release of the FOMC statement, markets lowered the future rate-hike size expectations and ignored the policymakers' review that rates are not sufficiently restrictive enough for economic activities.
Global markets advanced after a string of positive earnings from retailers market sentiment in the U.S. and a rebound in energy prices lifted indexes in Europe. Asian markets closed mixed but looked beyond the fresh wave of Covid infections in China.
European markets climbed on the back of the sustained rise in energy prices. Resource sector stocks led the gainers. Natural gas prices rose above 4% for the third day in a row.
Energy stocks led the decliners and investors awaited the Fed policy meeting minutes later in the week. Tesla recalled 321,000 vehicles. Cryptocurrency fallout spread deeper after FTX filed bankruptcy last week.
Coronavirus infections in China surged across the nation and authorities scrambled to impose more stringent lockdowns in several large cities. Crude oil and commodities eased following China demand worries.
Investors looked beyond the Federal Reserve's rhetoric and shifted focus to the central bank's actions. Crude oil declined for the second day in a row and extended the 2-day loss to more than 10%.
The S&P 500 index declined for the second day in a row and Treasury yields edged higher after Fed officials stressed that the central bank is far from done raising rates.
Fed officials carried out another round of campaign to cool market expectations. Treasury yields inched higher and stocks fell. Crude oil fell more than 4% on China demand worries after coronavirus infections spiked up.
