Stocks worldwide, gold prices up in anticipation of US data, China stimulus, weaker US dollar
ALBAWABA – Gold prices ticked higher on Tuesday and stocks worldwide mostly rose ahead of the release of key United States (US) inflation data later today as the Federal Reserve (Fed) convenes to decide on whether to hike or pin US interest rates this month.
The Consumer Price Index (CPI), coming out today, will give the Fed a solid indicator as to the state of the US economy and inflation.
Treasury yields rose and the US dollar fell, while Asian shares and European stock futures both ticked higher as US stocks rallied, news agencies reported.
Contrary to the usual trend, silver and gold prices both rose on Tuesday, as markets held out for the Fed’s decision tomorrow, Wednesday, up 0.39 and 0.07 percent per ounce each, respectively.
Gold prices were up $1.44 on the ounce, at $1,985.24, as per GoldPrice.org, and silver was $0.09 higher, at $22.92, per ounce.
Gold prices hit an all-time high of over $2,070 an ounce last week and maintained their prices well into the weekend, but soon started to plummet come Saturday.
Stocks worldwide bounce on anticipation of Fed decision, gold prices rise
Asian shares were broadly higher, with Hong Kong’s equity gauges leading gains, Bloomberg reported.
Stocks worldwide follow Wall Street rally as gold prices rise on weaker US dollar - Shutterstock
Elsewhere in Asia, Tokyo, Shanghai, Sydney, Seoul, Mumbai, Singapore, Taipei and Jakarta were all in the green, according to Agence France-Presse (AFP).
MSCI’s Asia Pacific Index snapped a two-day decline, with tech stocks in the lead, tracking a rally in US tech stocks. Gains in the US tech sector drove the Philadelphia Semiconductor Index to its highest close since January 2022, according to Bloomberg.
In China, the 2023 Central Economic Work Conference is expected to end Tuesday.
It should indicate a more proactive role for fiscal policy, including more front-loading of funding and strengthening implementation to improve policy efficacy, as per Bloomberg Economics.
Traders are holding out for information as to how much stimulus to expect next year, according to AFP.
Wall Street leads, stocks worldwide follow as gold prices rise on weaker US dollar
Meanwhile, US equity futures were steady, as per Bloomberg. Though AFP reported Wall Street seeing all three main indexes close higher, including the Dow ending at its highest level in two years.
London opened higher as the latest UK unemployment data boosted hopes of a cut to British interest rates by the middle of next year. While Frankfurt extended its gains after a record finish Monday, with Paris also in the green.
Gold prices, stocks worldwide up ahead of CPI data - Shutterstock
Additionally, oil prices edged higher and Bitcoin rose after posting its steepest drop in almost four months as traders moved to lock in profits following a more than 150 percent rally this year.
Stocks worldwide, gold prices up on weaker US dollar
As for currencies, the yen rebounded from its biggest decline in over a month Monday, triggered by a report saying Bank of Japan officials see little need to rush to scrap negative interest rates, in December.
Japan’s five-year government bond sale drew higher-than-expected cut-off prices, Bloomberg reported, signalling robust demand as speculation eased about the BOJ ending the negative interest rate regime.
The currency has swung sharply over the past week after hitting a four-and-a-half-month high.
On the other hand, the greenback was also down against most other currencies, including the euro, pound, Australian dollar, South African rand and South Korean won.
US 10-year treasury yield was up on Tuesday at 4.2 percent as the US dollar fell, with Bloomberg’s dollar index spot down 0.18 percent.
Stocks worldwide: Markets summary by AFP and Bloomberg
Tokyo - Nikkei 225: UP 0.2 percent at 32,843.70 (close)
Hong Kong - Hang Seng Index: UP 1.1 percent at 16,374.50 (close)
Shanghai - Composite: UP 0.4 percent at 3,003.44 (close)
London - FTSE 100: UP 0.3 percent at 7,566.80
Dollar/yen: DOWN at 145.42 yen from 146.09 yen on Monday
Euro/dollar: UP at $1.0778 from $1.0761
Pound/dollar: UP at $1.2570 from $1.2562
Euro/pound: UP at 85.75 pence from 85.72 pence
New York - Dow: UP 0.4 percent at 36,404.93 (close)
S&P 500 futures were little changed as of 6:44 a.m. London time
Nasdaq 100 futures rose 0.2 percent
Euro Stoxx 50 futures rose 0.1 percent
Hong Kong’s Hang Seng rose 1.2 percent
The Shanghai Composite rose 0.2 percent
Japan’s Topix fell 0.2 percent
Australia’s S&P/ASX 200 rose 0.5 percent
The Bloomberg Dollar Spot Index fell 0.2 percent
The euro was little changed at $1.0772
The Japanese yen rose 0.5 percent to 145.42 per dollar
The offshore yuan rose 0.1 percent to 7.1869 per dollar
The Australian dollar rose 0.3 percent to $0.6588
The British pound rose 0.2 percent to $1.2579
Bitcoin rose 0.8 percent to $41,528.18
Ether rose 0.1 percent to $2,219.66
The yield on 10-year Treasuries declined three basis points to 4.20 percent
Japan’s 10-year yield declined four basis points to 0.735 percent
Australia’s 10-year yield declined one basis point to 4.33 percent
