Stocks worldwide up on hopes as anticipation drives up gold prices
ALBAWABA – Stocks worldwide mostly rose on Thursday as gold prices topped Tuesday’s six-month high, hovering near this year’s highest level in May 2023.
Asian markets ticked higher just ahead of the release of key US inflation data, as traders ramped up bets the Federal Reserve (Fed) will cut interest rates as soon as next year.
European stock markets also rose at the start of trading Thursday, as investors reacted to mixed economic news out of France, according to Agence France-Presse (AFP).
Stocks worldwide up as demand picks up for safe havens, also driving gold prices, in anticipation of lower rates soon - Shutterstock
In the Eurozone, the Paris CAC 40 index edged up 0.1 percent to 7,273.89 points, as official data showed both slowing inflation and a contraction of economic growth in France.
Frankfurt's DAX advanced 0.2 percent to 16,200.71 and London's benchmark FTSE 100 index grew 0.2 percent to 7,437.39 points.
AFP reported Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Jakarta and Taipei all up, while Singapore, Manila, Mumbai and Bangkok were down.
Meanwhile, gold prices topped the six-month high breached on Tuesday, at over $2,017 per ounce of spot gold, rising to over $2,041.31 by 1247 Amman Time, according to GoldPrice.org.
Gold prices hit their highest level in 2023 back in May, at over $2,052 per ounce, up 16.9 percent from the year’s low of $1,748.77.
Typically, rising gold prices indicate a risk-off appetite taking over the market. But a recent rally in stocks worldwide has driven equities higher, despite the cooldown this week.
Expectations that the US central bank is done hiking rates and will soon start cutting drove investors away from treasuries and currencies. Trends indicate a split in appetite, with demand up for both ends of the risk spectrum, high-risk stocks and safe-haven commodities.
High-performing stocks aided in the exodus of investment from the treasuries and bonds markets into stocks worldwide, while many went the other way.
Lower interest rates mean a weakening US dollar, which bodes well for traders who intend to invest in safe havens. Gold prices, like oil, usually go in the opposite direction of the US dollar.
Stocks worldwide, gold prices up on anticipation of lower rates
Bets for a Fed pivot on rate hikes helped propel a gauge of Asian equities to an 8 percent gain in November following three straight months of losses, according to Bloomberg. Europe’s Euro Stoxx 600 futures rose 0.5 percent, putting the index on course for its best month since January as US stock futures edged higher.
Gold prices and stocks worldwide rise on hopes that the Fed will be cutting rates after strong economic data from the US and slower inflation - Shutterstock
US data on Wednesday provided support for a soft landing of the US economy.
Economic activity slowed in recent weeks as consumers pulled back on discretionary spending, the Fed said, as per Bloomberg. Gross domestic product rose at the fastest pace in nearly two years, while consumer spending advanced at the slowest rate.
Stocks Worldwide and Markets Summary by Bloomberg and AFP:
Tokyo - Nikkei 225: UP 0.5 percent at 33,486.89 (close)
Hong Kong - Hang Seng Index: UP 0.3 percent at 17,042.88 (close)
Shanghai - Composite: UP 0.3 percent at 3,029.67 (close)
London - FTSE 100: UP 0.2 percent at 7,436.59
Dollar/yen: DOWN at 146.97 yen from 147.22 yen on Wednesday
Euro/dollar: DOWN at $1.0955 from $1.0978
Pound/dollar: UP at $1.2700 from $1.2698
Euro/pound: UP at 86.24 pence from 86.43 pence
West Texas Intermediate: UP 0.8 percent at $78.47 per barrel
Brent North Sea crude: UP 0.6 percent at $83.56 per barrel
New York - Dow: UP less than 0.1 percent at 35,430.42 (close)
The Stoxx Europe 600 rose 0.2 percent as of 9:26 a.m. London time
S&P 500 futures rose 0.2 percent
Nasdaq 100 futures rose 0.2 percent
Futures on the Dow Jones Industrial Average rose 0.4 percent
The MSCI Asia Pacific Index rose 0.4 percent
The MSCI Emerging Markets Index rose 0.1 percent
The Bloomberg Dollar Spot Index rose 0.2 percent
The euro fell 0.3 percent to $1.0932
The Japanese yen was little changed at 147.14 per dollar
The offshore yuan was little changed at 7.1390 per dollar
The British pound fell 0.2 percent to $1.2671
