Global Shares Ease After Fed Dents Optimism

Global shares eased on Tuesday, Jan. 10, 2023, as investors took profit on the gains from the past two weeks after comments from two Federal Reserve officials injected a note of caution over the U.S. rate outlook, knocking equities, commodities, and other risk assets, Amanda Cooper reported for Reuters.

Photo Insert: The MSCI All-World index eased 0.1%, but remained in sight of Monday's three-week high, while the dollar - a gauge of investor risk appetite - held steady against a basket of major currencies.

The MSCI All-World index eased 0.1%, but remained in sight of Monday's three-week high, while the dollar - a gauge of investor risk appetite - held steady against a basket of major currencies.

In the past six weeks, even as cases have surged around the country, China has dismantled its zero-COVID policy, which has given markets a bumpy ride as investors have weighed up the economic benefits of reopening against the impact to activity from the wave of infections.

Adding to that has been a sense of optimism that inflation has peaked, especially in the United States, and, as such, the Fed will not have to raise rates as much as many had feared.

However, with consumer price pressures still well above the central bank's target of 2%, two Fed officials on Monday issued a stark reminder that interest rates will have to keep rising, no matter what investors have priced in.

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