© Reuters. File photo: An investor looks at a billboard showing stock information at a brokerage firm in Beijing, China, Oct. 8, 2018. REUTERS/Jason Lee
NEW YORK (Reuters) – Global stock markets rallied before the Federal Reserve released its minutes, but U.S. Treasury yields fell.
Traders hope Wednesday’s meeting minutes will provide clues that the Fed is set to halt the pace of rapid rate hikes in response to the easing of economic conditions.
U.S. jobless claims rose more than expected last week, while U.S. business activity contracted for a five-month period in November, according to the S&P Global (NYSE:) Flash U.S. Composite PMI Output Index on Wednesday. showed that
“What investors want is word that we will see a pause in the near future as the consumer price index may be peaking,” said chief investment officer Jordan Kahn. It’s about the Fed acknowledging something.” At ACM Funds in Los Angeles, California.
The MSCI All Country stock index rose 0.8%, while European stocks rose 0.62%.
US Treasury yields traded lower. His 10-year bond on the benchmark dropped to his 3.7242% and the 2-year yield dropped to his 4.4835%.
The yield curve comparing these two bonds spread further into negative territory, at -76.30 basis points. Once inverted, that portion of the curve is taken as an indicator of an upcoming recession.
“I tend to think that investors looking for a hint of a pause will be disappointed. We need to curb demand,” Khan said.
“The yield curve still screams that the economy is on the brink of a slowdown,” he added.
On Wall Street, all three major indexes traded higher, led by gains in technology, consumer discretionary, telecommunications and industrials.
It increased by 0.29% to 34,196.78, increased by 0.56% to 4,025.81, and increased by 0.96% to 11,282.14.
Oil prices fell more than 4% as the G7 countries considered a higher price cap for Russian oil than is currently being traded, and U.S. gasoline inventories were higher than analysts expected. did.
Futures for January delivery fell 4.2% to $84.65 a barrel and 4.46% to $77.34 a barrel.
The US dollar fell across the board before the Federal Reserve Board minutes and new data showing worsening economic conditions were released. Down 0.7%, the euro rose 0.62% to his $1.0366.
Gold prices were volatile as the US dollar fell. It rose 0.1% to $1,742.66 an ounce while the US fell 0.10% to $1,736.50 an ounce.