---
title: "Stocks resume rally with slower rate-hike bets: markets wrap"
description: "Stocks advanced, with US futures bouncing back from tech earnings worries while Hong Kong’s benchmark gauge rallied for a second day. The dollar stabilised after a two-day drop."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2022-10-27-stocks-resume-rally-with-slower-rate-hike-bets-markets-wrap/"
published: "2022-10-27T05:59:58"
lang: "en-ZA"
word_count: 414
---

# Stocks resume rally with slower rate-hike bets: markets wrap

> Stocks advanced, with US futures bouncing back from tech earnings worries while Hong Kong’s benchmark gauge rallied for a second day. The dollar stabilised after a two-day drop.

By Bloomberg · Published 27 October 2022, 07:59 SAST

## Content

An index of global shares is headed for a fifth day of gains, its longest stretch in more than two months, amid growing expectations of moderating US rate hikes. A tech rally powered Hong Kong shares to further erode losses incurred earlier this week after President Xi Jinping tightened his grip on power. Japanese stocks led declines in Asia.

A Bloomberg gauge of the dollar steadied, with offshore yuan giving up some of Wednesday’s gains. The yield on the 10-year Treasury bond sat around 4% after inching below the threshold earlier, with investors positioning for less aggressive rate hikes as earnings and economic data indicate a slowdown. The benchmark US yield has dropped more than 20 basis points over the past two days.

Amid the challenges for equities investors, central banks are providing some optimistic signals that less aggressive monetary tightening may be on the horizon. The Bank of Canada raised interest rates by a smaller amount than expected on Wednesday, adding to suggestions that the Federal Reserve is also getting closer to shifting down in gears.

A contraction in services and manufacturing and fewer new home sales showed the Fed’s efforts to cool the economy seem to be bearing some fruit. Still, economists expect the Fed to hike by 75 basis points for the fourth time in a row when it meets next week.

“The only reprieve that will cause them to pause will be signs that inflation is subsiding and we’re not quite there,” said Nancy Daoud, a private wealth adviser at Ameriprise Financial, in an interview on Bloomberg TV. “They will stick to their guns and raise rates in November and again in December.”

The European Central Bank is also projected to hike by 75 basis points later on Thursday.

US futures climbed, overcoming a 24% decline for Meta Platforms in after-hours trading following underwhelming third-quarter earnings. Wednesday’s declines for the Facebook parent, Amazon.com, Alphabet and Microsoft dragged the S&P 500 to a loss as investors grew uneasy over tech profits. South Korea’s Samsung Electronics was little changed after reporting [weak earnings](https://www.bloomberg.com/news/articles/2022-10-27/samsung-profit-misses-estimates-deepening-chip-slump-fears).

China’s mainland stock indexes were little changed, while Australian equities rose.

Oil gained further ground after touching the highest level in about two weeks after US Secretary of State Anthony Blinken said a deal with Iran would be unlikely to advance in the short term. Traders placed bets on a soaring price for aluminium as the US considers adding the metal to sanctions against Russia, a major producer.