Global Markets: MSCI world stock index hits record high, dollar dips after US inflation data

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28/06/2024 17:00

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      US stocks higher
    

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      MSCI all country stock index hits record high
    

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      Treasury bond yields fall
    

  
 (Updates to 11:15 a.m. ET)
    By Caroline Valetkevitch and Huw Jones
       NEW YORK/LONDON, June 28 (Reuters) - The MSCI world
stock index hit a record high while the U.S. dollar index inched
lower on Friday after data showed that U.S. inflation was flat
in May, fueling investor optimism the Federal Reserve could
begin cutting interest rates in September.
    U.S. stocks were moderately higher after the S&P 500 and
Nasdaq hit record highs in early New York trading.
    The Fed's preferred inflation measure, the personal
consumption expenditures (PCE) index, showed that annual growth
in prices was 2.6% in May, as economists had expected, down from
2.7% in April.
    "When you compare what we got today with expectations, it is
very much in-line and so the Fed will likely have enough comfort
by the time of the September 18th meeting to cut rates for the
first time," said Art Hogan, chief market strategists at B Riley
Wealth in New York.
    The chance of a rate cut in September inched up to 68% from
61% before the data, as per LSEG FedWatch data.
    Investors were still digesting the U.S. presidential debate
from late Thursday between Democratic President Joe Biden and
Republican rival Donald Trump ahead of the November election.
    Trump Media & Technology Group  DJT.O  shares rose sharply
early but were last down about 3%.
    The Dow Jones Industrial Average  .DJI  rose 96.18 points,
or 0.26%, to 39,264.37, the S&P 500  .SPX  gained 14.49 points,
or 0.26%, to 5,497.36 and the Nasdaq Composite  .IXIC  gained
39.87 points, or 0.23%, to 17,899.56.
    MSCI's gauge of stocks across the globe  .MIWD00000PUS  was
up 1.60 points, or 0.20%, at 805.35 after hitting a record at
808.37 earlier. The STOXX 600  .STOXX  index fell 0.27%.
    The dollar index  =USD , which measures the greenback
against a basket of currencies, was down slightly at 105.85.
    The U.S. dollar briefly fell against the Japanese yen after
the PCE data. Against the yen  JPY=EBS , the dollar last was up
0.09% at 160.88.
    The yen's slide to a 38-year low has fueled expectations of
intervention by the Japanese authorities to stem the currency's
weakness.
    The euro  EUR=  was up 0.06% at $1.0708.
    Worries about the outcome of the two-stage French
parliamentary elections that start on Sunday pushed the risk
premium on French government bonds over German bonds to its
widest since the euro zone debt crisis in 2012.
    In Treasuries, the yield on benchmark U.S. 10-year notes
 US10YT=RR  rose 4.3 basis points to 4.331%, from 4.288% late on
Thursday.
    U.S. crude  CLc1  lost 0.48% to $81.35 a barrel while Brent
 LCOc1  was flat at $86.39 per barrel.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD    http://tmsnrt.rs/2egbfVh
Global asset performance    http://tmsnrt.rs/2yaDPgn
Asian stock markets    https://tmsnrt.rs/2zpUAr4
On a tear    https://tmsnrt.rs/4cjWmKq
STOXX 600 in June over the years    https://tmsnrt.rs/3XJ0KOp
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Huw Jones in London and Caroline Valetkevitch in
New York; additional reporting by Johann M Cherian, Rae Wee and
Stella Qiu
Editing by Kim Coghill, Jacqueline Wong, David Goodman and
Christina Fincher)
 ((caroline.valetkevitch@thomsonreuters.com))
 
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