Sentiment somewhat recovers post-FOMC, but DXY and yields hold onto gains - Newsquawk EU Market Open<!-- -->

• Eurozone inflation rose to 3.2% over the twelve months ending in August, according to data from Eurostat. • The annual increase reached 3.2% as measured by the European Union's statistical office.

• Raiffeisen Bank International recently refuted claims made by Grizzly Research regarding the risks associated with its business operations in Russia. • The bank specifically disputed allegations concerning its compliance systems and potential sanctions violations.

• The US Federal Reserve raised the federal funds rate to 3.75%-4.00% overnight, marking its first rate hike in three years. • Wall Street responded with caution as the Dow fell 631 points, or 1.21%, while Brent crude eased by about 1% to $104.48 a barrel.

• Asian stock markets showed mixed results on Tuesday following a decline in U.S. shares after the Federal Reserve raised interest rates for the first time in three years. • Taiwan’s Taiex index jumped 1.3% and South Korea’s Kospi gained 0.9%, while the Hong Kong Hang Seng fell 0.7% to 24,533.46.

• The Federal Reserve raised interest rates by 0.25% to combat ongoing inflation. • This policy shift caused a decline in the value of the U.S. dollar and Asian sovereign bonds, which are government-issued debt securities.

• New Zealand reported second-quarter GDP growth of 0.2% on Wednesday, September 16, exceeding the 0.1% consensus. • The annual growth rate reached 2.6%, surpassing the 2.2% expectation and the Reserve Bank of New Zealand's flat projection.

• Most Asian stock markets rose on Tuesday as investors reacted to a Federal Reserve interest rate hike that reduced concerns over bond volatility. • Japan’s TOPIX rose 0.7%, Thailand’s SET added 0.9%, and New Zealand’s NZX 50 climbed 0.9%, while Chinese shares lagged behind.

• Fed Chair Kevin Warsh implemented a 25-basis-point interest rate hike on Wednesday, marking the central bank's first increase since 2023. • The decision followed a warning from Warsh that inflation levels remain too high, which erased early gains on Wall Street.

• European stocks rose on Wednesday following a two-session decline. • The recovery was supported by a halt in rising oil prices, which increased investor appetite for risk.

• Stock markets in South Korea and Taiwan rose 1.4% and 0.7% respectively as investors focused on AI-related memory chips. • Gains were supported by a weaker won, which increases local-currency earnings for major exporters like Samsung Electronics and SK Hynix.

• Asian markets traded mostly higher on Thursday, September 26, despite negative signals from Wall Street. • The upward trend followed a pullback in long-term bond yields after the US Federal Reserve implemented its first interest rate hike since July 2023.