Global Markets: Stocks gain ground, Treasury yields pull back after Powell statement

China Reinsurance (Group)

30/11/2022 19:24

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      Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
    

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      Graphic: World FX rates http://tmsnrt.rs/2egbfVh
    

  
 (Updates prices, adds commentary)
    By Sinéad Carew and Dhara Ranasinghe
       LONDON, Nov 30 (Reuters) - Wall Street equities rose on
Wednesday while U.S. Treasury yields pared gains and the dollar
lost ground after Federal Reserve Chair Jerome Powell said the
central bank could slow the pace of interest rate hikes "as soon
as December", even as he cautioned that inflation was still too
high. 
    His words appeared to soothe investors who were fearing a
more hawkish statement even as Powell warned that the fight
against inflation was far from over and that key questions
remain unanswered, including how high rates will ultimately need
to rise and for how long. 
    "The market is taking this glass-half-full, it could've been
worse approach. Powell didn't really say anything that new,"
said Sameer Samana, senior global market strategist at Wells
Fargo Investment Institute in Charlotte, North Carolina.
    "The path of least resistance since the last inflation
number has been higher. There's momentum to the upside in place
until something outright stops it," said Samana. 
    "Policy continues to tighten. People are just not
appreciating it," he added, noting that even if the Fed were to
pause rate hikes it is still shrinking the balance sheet which
he sees as "almost as important if not more important than the
level of rates."
    The Dow Jones Industrial Average  .DJI  rose 210.82 points,
or 0.62%, to 34,063.35, the S&P 500  .SPX  gained 48.55 points,
or 1.23%, to 4,006.18 and the Nasdaq Composite  .IXIC  added
228.54 points, or 2.08%, to 11,212.32.
    MSCI's gauge of stocks across the globe  .MIWD00000PUS 
gained 1.19%. Emerging market stocks  .MSCIEF  rose 2.06%.
    In Treasuries, Benchmark 10-year notes  US10YT=RR  were down
3.9 basis points to 3.709%, from 3.748% late on Monday. The
30-year bond  US30YT=RR  was last down 1.1 basis points to yield
3.7912%, from 3.802%. The 2-year note  US2YT=RR  was last down
4.5 basis points to yield 4.4277%, from 4.473%.
    In currencies, the dollar index  =USD  fell 0.533%, with the
euro  EUR=  up 0.46% to $1.0374.
    The Japanese yen strengthened 0.35% versus the greenback at
138.23 per dollar, while sterling  GBP=  was last trading at
$1.2011, up 0.49% on the day.
    Oil prices were rallying on Wednesday on signs of tighter
supply, a weaker dollar and optimism about a potential recovery
of demand in China.
        U.S. crude  CLc1  rose 3.04% to $80.58 per barrel and
Brent  LCOc1  was at $85.41, up 2.87% on the day.  
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global FX performance    http://tmsnrt.rs/2egbfVh
Global asset performance     http://tmsnrt.rs/2yaDPgn
Global markets' November rally    https://tmsnrt.rs/3FeJCGM
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 (Reporting by Sinéad Carew in New York, Dhara Ranasinghe, Marc
Jones and Amanda Cooper in London; additional reporting by Kane
Wu in Hong Kong, editing by Chizu Nomiyama and Elaine
Hardcastle)
 ((Sinead.carew@thomsonreuters.com;))
 
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