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Global Markets Rebound as Bank of Japan Eases Volatility Fears

Stocks rally worldwide following BOJ's reassurance amid economic turbulence and carry trade unwinding.

  • The Bank of Japan's unexpected rate hike initially triggered historic volatility in global markets.
  • Stocks saw the best two-day gain since May as panic subsided and markets stabilized.
  • The yen fell as BOJ indicated no further rate hikes if market instability continues.
  • US economic data showed mixed signals, with a strong service sector offsetting weak manufacturing and jobs reports.
  • Analysts suggest the recent selloff may be a healthy correction rather than a sign of an impending recession.
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