Global stocks steady, gold at six-month high as dollar slides

  • European stocks down slightly; S&P futures fall 0.1%
  • Gold climbs to six-month high in choppy trading
  • Eyes on inflation data from the US and EU
  • The oil market is tense ahead of the postponed OPEC+ meeting

LONDON/SYDNEY, Nov 27 (Portal) – Global stocks were little changed on Monday as investors awaited key inflation data from the United States and Europe later in the week, while gold hit a six-month high as the dollar fell.

MSCI’s world stock index (.MIWD00000PUS) was last down 0.04%, after rising for four straight weeks and gaining about 8.7% this month.

The European STOXX 600 index (.STOXX) was last down 0.15%, while the German Dax stock index fell 0.19% and the British FTSE 100 (.FTSE) slipped 0.3%. S&P 500 Index futures were 0.15% lower.

Global stocks have soared in recent weeks as bond yields fell, and cooling inflation in developed economies boosted investor expectations that central banks are done raising interest rates and may cut them soon.

“The (Federal Reserve) minutes were released (last week) and revealed what everyone already knew: namely, that at least for now they are either locked up or on pause… and as a result, both stocks and bonds are recovering,” said Duncan MacInnes, investment director at investment company Ruffer.

“We have forced interest rate increases of about 500 basis points… Do we really think that there will be no consequences? That seems to be what the market is saying.”

Investors awaited the release of the Fed’s preferred inflation gauge and euro zone consumer inflation numbers on Thursday, which could provide direction for markets after last week’s Thanksgiving lull.

European Central Bank President Christine Lagarde will address the European Parliament on Monday.

“It was a quiet day, maybe people are consolidating a little bit,” said Julian Howard, multi-asset investment director at asset manager GAM.

Howard said he currently prefers investing in cash-like funds with high returns rather than making big bets on stocks or bonds.

The yield on the 10-year U.S. Treasury note, which influences borrowing costs worldwide, recently fell 1 basis point to 4.470%. It has fallen sharply since hitting a 16-year high of over 5% in October. Yields move in the opposite direction to prices.

With US market interest rates falling, the dollar index fell more than 3% in November. The indicator, which tracks the dollar against six peers, traded 0.16% lower at 103.27 on Monday.

Gold benefited from dollar weakness, hitting a six-month high of $2,017.82 an ounce on Monday. Spot gold was last trading 0.52% higher at $2,012.39. Investors’ concerns about the Israel-Hamas conflict have also given the precious metal a boost.

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Oil prices fell on Monday, with Brent falling 1.08% to $79.70 a barrel and U.S. crude falling 1.16% to $74.65 a barrel.

The oil market faces a tense few days ahead of the OPEC+ meeting on November 30, where member countries will try to agree on production limits until 2024. It was originally scheduled for Sunday but was postponed as producers had difficulty finding a unanimous position.

The yield on 10-year German bonds fell 6 basis points to 2.589%, well below the 12-year high of 3.024% reached in early October. The euro was last up 0.13% at $1.0947.

Inflation data for Germany is expected on Wednesday ahead of the euro zone release.

Reporting by Harry Robertson in London and Wayne Cole in Sydney; Edited by Stephen Coates, Ed Osmond and Chizu Nomiyama

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