Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Global stock index rises as dollar, Treasury yields climb with rates in focus

Published Nov 29, 2023 09:53PM ET Updated Nov 30, 2023 05:01PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A man is reflected on an electric stock quotation board outside a brokerage in Tokyo, Japan April 18, 2023. REUTERS/Issei Kato/File Photo
 
XAU/USD
-0.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JP225
+0.28%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HK50
-0.54%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
-0.40%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
+1.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+1.41%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sinéad Carew and Marc Jones

NEW YORK/LONDON (Reuters) -MSCI'S global stock index rose on Thursday while the Dow closed at its highest level since mid-January 2022, and bond yields and the dollar gained after Federal Reserve officials sounded caution about interest rate cuts.

The U.S. Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.2% last month in line with economists' expectations. The annual inflation increase was the smallest in more than 2-1/2 years, signaling cooling demand.

U.S. Treasury yields climbed even after economic data provided more evidence that the Fed could end rate hikes. After a sharp decline in recent weeks, the benchmark 10-year yield is on pace for its biggest monthly drop since August 2011.

The dollar gained as investors took profits on bets it would weaken further and shrugged off economic data suggesting the Fed could be done hiking rates.

"Just about all the data today was favorable for investors. Most importantly, we continue to see a deceleration in the Fed's preferred measure of inflation, the core PCE price index," said Russell Price, chief economist at Ameriprise Financial (NYSE:AMP) Services Inc, in Troy, Michigan. He said this "should be a good thing for Fed decision-making in the next few meetings."

While the closely watched U.S. inflation data was in line with economists' expectations, some traders appeared to have priced in slower inflation, said John Augustine, chief investment officer at Huntington Private Bank.

"The market was anticipating that there would be a downside surprise, that inflation would come down faster and spending would fall faster than consensus," said Augustine.

Also on Thursday, Fed policymakers offered mixed messages with pushbacks on investor bets for a quick pivot to rate cuts.

New York Fed Bank President John Williams said if price pressures and imbalances persist "additional policy firming may be needed." And San Francisco Fed President Mary Daly said she is thinking about whether policy is "sufficiently restrictive to restore price stability" rather than about rate cuts.

MSCI's gauge of stocks across 47 countries rose 0.2%, on track for a monthly gain of 9%, after three straight months of declines. This would mark its biggest monthly percentage increase since 2020 when investors reacted to the first COVID-19 vaccine breakthroughs.

Earlier the pan-European STOXX 600 index had closed up 0.55%, confirming its biggest monthly percentage gain since January as weak economic data from Europe bolstered bets for rate cuts.

The Dow Jones Industrial Average rose 520.47 points, or 1.47%, to 35,950.89, the S&P 500 gained 17.22 points, or 0.38%, at 4,567.8 and the Nasdaq Composite dropped 32.27 points, or 0.23%, to 14,226.22.

The Dow, which is an index of 30 blue-chip U.S. stocks, hit its highest intraday level so far in 2023 and registered its biggest monthly percentage gain since October 2022. Its biggest boost came from Salesforce (NYSE:CRM) Inc after the company's strong quarterly report.

Yields in U.S. Treasuries and bonds of other major countries have tumbled in November from peaks of more than a decade in October. U.S. Treasury yields, which usually drive global borrowing costs, have fallen the most since 2008.

On Thursday, benchmark 10-year notes were up 7.1 basis points at 4.342%, from 4.271% late on Wednesday. The 30-year bond was last up 5.8 basis points to yield 4.509% while the 2-year note was up 5.5 basis points to yield 4.703%.

In currencies, the dollar index rose 0.681%, with the euro down 0.76% to $1.0885.

The Japanese yen weakened 0.66% versus the greenback at 148.21 per dollar, while Sterling was last trading at $1.2624, down 0.55% on the day.

In energy, oil prices settled lower after OPEC+ producers agreed to first-quarter oil output cuts that fell short of market expectations.

U.S. crude settled down 2.44% at $75.96 per barrel and Brent ended at $82.83, down 0.32% on the day.

Gold prices fell on Thursday but eyed a second straight monthly gain as expectations the Fed could cut interest rates enhanced the appeal of non-yielding bullion.

Spot gold dropped 0.4% to $2,035.94 an ounce. U.S. gold futures fell 0.52% to $2,036.40 an ounce.

Global stock index rises as dollar, Treasury yields climb with rates in focus
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email