© Reuters. FILE PHOTO: An investor looks at a stock information board at a brokerage office in Beijing, China October 8, 2018. REUTERS / Jason Lee
By Chibuike Oguh
NEW YORK (Reuters) – World stocks rose while U.S. Treasury yields fell after minutes of the Federal Reserve’s latest policy meeting showed U.S. central banks are looking to decelerate soon. interest rate increase.
A “significant majority” of Fed policymakers agreed it was “probably appropriate soon” to slow the pace of rate hikes, minutes of the meeting showed.
Traders had been expecting the Fed minutes to confirm a softer stance by officials after recent data showed economic conditions were consolidating.
On Wednesday, U.S. Labor Department data showed jobless claims rose more than expected last week. U.S. business activity contracted for the fifth month of November, according to the S&P Global Composite PMI Output Index (NYSE:NYSE).
“I really don’t think there are any surprises. They still seem to indicate that inflation risks are still high and recent data more persistent than they thought,” said Jordan Kahn, chief investment officer at ACM. Funds said. Los Angeles, California.
“People will be excited to see some participants mention the need to slow rate hikes. But the market has already priced in a 50 basis point rate hike for December and the odds are in the market.” The future of the Fed is a 50 basis point increase that has been 70% in these few minutes,” he said.
The MSCI All Country Stock Index rose 0.85%, while European shares rose 0.6%.
Yields on US Treasuries traded lower after the Fed meeting minutes. The 10-year benchmark fell to 3.713% while the two-year yield fell to 4.4876%.
The yield curve comparing these two bonds remains in the negative zone, at -76.30 basis points. When inverted, that part of the curve is considered a sign of an upcoming recession.
Kahn added: “The Fed raised rates by 75 basis points and it is unrealistic for them to continue at that rate.
On Wall Street, all three major indexes traded higher, led by technology, consumer discretionary, media, healthcare and industrial stocks.
The index rose 0.37% to 34,225.33, the index gained 0.64% to 4,029.26 and increased 1.08% to 11,294.92.
Oil prices fell more than 3%, continuing a string of volatile transactions, as the Group of Seven (G7) countries considered a price ceiling for Russian oil higher than current market levels and due to gasoline reserves in the United States. The period rose more than analysts expected. expected.
Futures for delivery in January fell 3.63% to $85.15 a barrel, while down 3.8% to $77.82 a barrel.
The US dollar fell across the board after the Fed minutes. The coin fell 0.924%, with the euro up 0.9% to $1.0395.
Gold prices escalate as the US dollar falls. rose 0.7% to $1,751.84 an ounce, while US prices rose 0.29% to $1,743.30 an ounce.