Global markets remained volatile as central banks raised rates, oil stayed above $100, bond yields remained elevated, and AI continued to influence technology stocks.

Federal Reserve Raises Rates

The Fed raised rates by 25 basis points to 3.75%–4.00%, strengthening the US Dollar and pushing the 10-year Treasury yield toward 5%.

Bank of Japan Raises Rates

The BoJ increased rates to 1.25%, the highest in around 31 years. Despite the hike, the Yen weakened as markets focused on future rate expectations.

Gold Recovers

Gold initially fell after the Fed decision but rebounded more than 2% as the Dollar weakened and oil prices eased.

Oil Above $100

Brent remained above $100 per barrel, keeping inflation and interest-rate expectations in focus.

US Stocks Mixed

US markets ended mixed, with the Nasdaq supported by semiconductor stocks, while the Dow recorded a significant weekly decline.

UPCOMING WEEK

US Rates: Economic data and Fed comments could influence the Dollar, Gold, yields and stocks.

Japanese Yen: Yen weakness and possible intervention could increase volatility in USDJPY.

Oil & Middle East: Geopolitical developments remain important for oil and global inflation.

US-China: Trade, technology, semiconductors and the Chinese Yuan remain key market themes.

AI & Technology: Investors continue to monitor AI investment, valuations and future earnings potential.

ONEXAR WEEKLY INSIGHT

Japan's Monetary Policy Transformation

Japan is moving away from years of ultra-low interest rates. The BoJ's latest hike to 1.25% highlights an important trading lesson: markets react not only to rate decisions, but also to expectations of what comes next.