Global Markets: Shares rise, U.S. Treasury yields drop ahead of Fed minutes' release

Twamev Construction and Infrastructure

23/11/2022 16:59

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      Fed minutes for November due at 1900 GMT
    

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      Wall Street stocks trade higher
    

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      U.S. Treasury yields retreat
    

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      Crude prices drop more than 4%
    

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      U.S. dollar falls
    

  
 (New throughout, updates with U.S. markets)
    By Chibuike Oguh
       NEW YORK, Nov 23 (Reuters) - World equities rose while
U.S. Treasury yields were lower ahead of the release of the
Federal Reserve's meeting minutes that would offer a glimpse on
whether officials are likely to soften their stiff monetary
policy stance.
    Traders are expecting the minutes, which will be published
on Wednesday, to provide clues that the Fed is set to end its
pace of sharp interest rate hikes in response to a moderation in
economic conditions.
    Labor Department data showed on Wednesday that U.S. jobless
claims increased more than expected last week while U.S.
business activity contracted for a fifth month in November,
according to the S&P Global flash U.S. Composite PMI Output
Index.
   "What investors are hoping for is that the Fed acknowledges
that since the consumer price index looks like it might be
peaking that there's going to be some language that they see a
pause on the near-term horizon," said Jordan Kahn, chief
investment officer at ACM Funds in Los Angeles, California.
    The MSCI All Country stock index   .MIWD00000PUS  was up
0.8%, while European shares  .STOXX  rose 0.62%.
    U.S. Treasury yields were trading lower. Benchmark 10-year
notes  US10YT=RR  were down to 3.7242% while the yields on
two-year notes  US2YT=RR  dropped to 4.4835%.
    The yield curve that compares these two bonds  US2US10=TWEB 
widened further into negative territory, to -76.30 basis points.
When inverted, that part of the curve is seen as an indicator of
an upcoming recession.
    "I tend to think that investors that are looking for any
sought of hint of a pause are going to be disappointed. I think
the Fed is going to keep the message they've been saying for a
while, which is that their job isn't done yet and need to bring
down demand," Kahn said.
   "The yield curve is still screaming that the economy is on
the precipice of a slowdown," he added.
    On Wall Street, all three major indexes were trading higher,
led by gains in technology, consumer discretionary,
communication, and industrial stocks.
    The Dow Jones Industrial Average  .DJI  rose 0.29% to
34,196.78, the S&P 500  .SPX  gained 0.56% to 4,025.81 and the
Nasdaq Composite  .IXIC  added 0.96% to 11,282.14.
    Oil prices fell more than 4% as the Group of Seven (G7)
nations looked at a price cap on Russian oil that is above where
it is currently trading and as gasoline inventories in the
United States built more than analysts expected.
        Brent  LCOc1  futures for January delivery fell 4.2% to
$84.65 a barrel, while U.S. crude  CLc1  fell 4.46%, to $77.34
per barrel.
    The U.S. dollar fell across the board ahead of the release
of the Fed's minutes and new data showing weaker economic
conditions. The dollar index  =USD  fell 0.7%, with the euro
 EUR=  up 0.62% to $1.0366.
        Gold prices were choppy as the U.S. dollar fell. Spot
gold  XAU=  added 0.1% to $1,742.66 an ounce, while U.S. gold
futures  GCc1  fell 0.10% to $1,736.50 an ounce.
  
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD    http://tmsnrt.rs/2egbfVh
Global asset performance    http://tmsnrt.rs/2yaDPgn
Asian stock markets    https://tmsnrt.rs/2zpUAr4
Central banks ramp up fight against inflation    https://tmsnrt.rs/3iam1hy
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Chibuike Oguh in New York
Editing by Bernadette Baum)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))
 
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