Global stock index close to flat ahead of key central bank decisions, US data
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
NEW YORK/ LONDON, Dec 15 : MSCI's global equities gauge turned slightly higher while U.S. Treasury yields edged down as investors waited cautiously for the week's busy schedule of U.S. economic data releases including the jobs report and retail sales as well as the latest inflation reading.
U.S. stocks were making little progress in either direction after opening slightly higher following a slump on Friday amid concerns about inflation and a bubble in artificial intelligence shares.
After digesting last week's update from the Federal Reserve, investors were turning their attention to economic data that was delayed by the U.S. government shutdown, including the jobs report for November and the monthly consumer price index (CPI) inflation report.
With traders already pricing in more rate cuts this year compared with Fed estimates for just one, R. Burns McKinney, portfolio manager at NFJ Investment Group said that investors are hoping for a jobs report that is weak enough to support more easing.
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners.
Loading
"This is the kind of market where investors are kind of hoping for softness. We're right back to where bad news is good news. You just don't want the bad news to be terribly bad. You want mildly bad news," said McKinney.
New York Fed President John Williams said on Monday the U.S. central bank's interest rate cut last week leaves it in a good position to deal with what lies ahead, adding that he sees inflation moderating amid cooling in the job market.
On Wall Street at 11:26 a.m., the Dow Jones Industrial Average <.DJI> rose 6.24 points, or 0.01 per cent, to 48,464.29, the S&P 500 <.SPX> rose 8.96 points, or 0.13 per cent, to 6,836.37 and the Nasdaq Composite <.IXIC> fell 0.18 points, or 0.01 per cent, to 23,193.52.
MSCI's gauge of stocks across the globe rose 1.21 points, or 0.12 per cent, to 1,010.09.
The pan-European STOXX 600 index rose 0.79 per cent as investors returned to risk assets in a week packed with central bank decisions and economic data.
In U.S. Treasuries, yields dipped while investors waited for the last major economic releases for the year.
The yield on benchmark U.S. 10-year notes fell 2.6 basis points to 4.17 per cent, from 4.196 per cent late on Friday while the 30-year bond yield fell 2.5 basis points to 4.8333 per cent.
The 2-year note yield, which typically moves in step with Fed interest rate policy expectations, fell 2.3 basis points to 3.508 per cent, from 3.531 per cent late on Friday.
CENTRAL BANK DECISIONS LOOM
In currencies, the U.S. dollar weakened against rivals including the yen, euro and Swiss franc in a week packed with central bank decisions around the world and U.S. economic data.
Among the policy decisions due this week, the Bank of Japan is expected to hike rates by 25 basis points to 0.75 per cent, while the Bank of England may make an equal-sized cut to 3.75 per cent. The European Central Bank is expected to keep interest rates on hold, alongside Sweden's Riksbank and Norway's Norges Bank.
The dollar index <=USD>, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.19 per cent to 98.23.
The euro was up 0.17 per cent at $1.176 and, against the Japanese yen , the dollar weakened 0.36 per cent to 155.25. Against the Swiss franc , the dollar weakened 0.08 per cent to 0.795.
In cryptocurrencies, bitcoin fell 1.59 per cent to $87,054.65.
In energy markets, oil prices fell as investors balanced supply disruptions linked to escalating U.S.-Venezuelan tensions with oversupply concerns and the impact of a potential Russia-Ukraine peace deal.
U.S. crude fell 1.36 per cent to $56.66 a barrel and Brent fell to $60.38 per barrel, down 1.21 per cent on the day.
In precious metals, spot gold rose to hover near a seven-week peak as it was bolstered by a softer dollar, while silver held below a record high hit.
Spot gold fell 0.1 per cent to $4,298.01 an ounce. U.S. gold futures were flat at $4,300.00 an ounce.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app