Global stock indexes rose on Tuesday, but US Treasury yields fell as investors sought further clues about how soon the Federal Reserve would begin decreasing interest rates.
The US dollar fell marginally but remained close to its best level in over three months following recent solid economic data and the Fed’s recent aggressive attitude on interest rates.
Loretta Mester, President of the Cleveland Fed, indicated on Tuesday that if the US economy performs as expected, rate decreases may be possible. However, Mester stated that she was unprepared to set a timeline for an easier policy due to persistent inflation concerns.
Traders had previously priced in a likely rate decrease in March, but now they are pushing out estimates of the Fed’s first rate cut to May.
According to Matthew Weller, global head of research at FOREX.com, “Now traders are wondering if instead of whether we’ll get a soft landing or recession, we could have no landing or re-acceleration this year.”
Wall Street investors also reviewed the most recent quarterly reports and projections from US companies. DuPont de Nemours (DD.N), a chemicals company, saw a spike in share price following positive earnings and the announcement of a $1 billion share repurchase program.
The S&P 500 (.SPX) opened with a gain of 11.42 points, or 0.23%, to 4,954.23, the Dow Jones Industrial Average (.DJI) opened with a gain of 141.24 points, or 0.37%, to 38,521.36, and the Nasdaq Composite (.IXIC) opened with a gain of 11.32 points, or 0.07%, to 15,609.00. The MSCI world equity index (.MIWD00000PUS), which monitors stocks across 49 countries, increased by 0.51%.
Beijing increased its attempts to establish a floor for its stock market overnight, which helped Chinese blue-chip stocks (.CSI300) rise and opened a new tab of more than 3%. The Golden Dragon China index (.HXC) rose 5.9% in New York trading, while the iShares China large-cap exchange-traded fund (FXI.P) surged 5.7%.
There was strong demand, according to the Treasury, for a new three-year note auction. The benchmark 10-year note hit an 11-day high of 4.177% on Monday but fell 7 basis points throughout the day to 4.096%. The yield on two-year bonds dropped 6 basis points to 4.412%, from a one-month high of 4.483% on Monday.
The dollar index, which compares the value of the US dollar to six other currencies, dropped 0.24% to 104.19 on Monday after reaching a record high of 104.60 on November 14. At $1.0751, the euro was up 0.09%.
A series of declarations from China’s securities regulator, together with a speculated forthcoming summit between President Xi Jinping and financial regulators, underscored the pressing need for Chinese authorities to halt significant losses in the country’s stock market. Central Huijin Investment, a state fund, recently said that it has broadened the range of exchange-traded fund investments it makes.
Due to the nation’s failing economy, China’s blue-chip index fell to a five-year low last week. As a result, state-sponsored investors known as the “national team” increased their purchases of blue-chip stock index funds in an attempt to support the market.
The U.S. Energy Department’s announcement that crude oil output will not increase as quickly as anticipated caused Brent and U.S. crude futures to soar.
While Brent crude increased 0.8% to $78.59, U.S. crude increased 0.7% to end at $73.31 per barrel. Spot gold increased 0.6% to an ounce for $2,035.89.
- Published By Team Genuine Reporter