Shares rise, U.S. Treasury yields drop ahead of Fed minutes’ release

  • Feed minutes for November at 1900 GMT
  • Wall Street stocks trade higher
  • US Treasury produces returns
  • More than 4 percent decline in crude oil prices
  • The US dollar falls

New York, November 23 (Post Bureau) – World shares rose despite US Treasury yields falling ahead of the release of minutes of the Federal Reserve meeting, which will provide a glimpse of whether officials will continue their tight monetary policy stance. are likely to soften.

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 US jobless claims rose more than expected last week while US business activity contracted for a fifth straight month in November, according to the S&P Global Flash US Composite PMI output index.

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“What investors are hoping for is that the Fed has acknowledged that because the consumer price index looks like it’s going to peak that there’s going to be some language that a pause is on the near-term horizon. see,” said Jordan Kahn, chief investment officer. at the ACM Funds in Los Angeles, California.

The MSCI All Country Stock Index (.MIWD00000PUS) rose 0.8%, while European shares (.STOXX) added 0.62%.

US Treasury yields were trading lower. The benchmark 10-year note fell to 3.7242% while the yield on the two-year note fell to 4.4835%.

The yield curve that compares these two bonds moved into negative territory by -76.30 basis points. When inverted, that portion of the curve is seen as an indicator of an impending recession.

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“I think investors who are looking for a pause sign are going to be disappointed. I think the Fed is going to keep the message that they’ve been saying for a while, which is their job.” It hasn’t done yet and there is a need to reduce the demand,” Kahn said.

“The yield curve is still screaming that the economy is in recession,” he added.

On Wall Street, all three major indexes were trading higher, led by gains in technology, consumer discretionary, communications and industrial stocks.

The Dow Jones Industrial Average (.DJI) rose 0.29% to 34,196.78, the S&P 500 (.SPX) rose 0.56% to 4,025.81 and the Nasdaq Composite (.IXIC) added 0.96% to 11,1428.

Oil prices fell more than 4% as the Group of Seven (G7) countries saw a price cap on Russian oil near where it currently trades and gasoline inventories in the United States made up more than analysts expected.

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Brent futures for January delivery fell 4.2% to $84.65 a barrel, while US crude fell 4.46% to $77.34 a barrel.

The US dollar fell ahead of the Fed minutes and the release of new data showing weak economic conditions. The dollar index fell 0.7%, with the euro up 0.62% to $1.0366.

The fall in the US dollar has led to a decline in gold prices. Spot gold rose 0.1% to $1,742.66 an ounce, while U.S. gold futures fell 0.10% to $1,736.50 an ounce.

Reporting by Chibuike Oguh in New York Editing by Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.


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