Gold prices up as stocks worldwide dip on BoJ anticipations, Fed tempering expectations
ALBAWABA – Stocks worldwide mostly fell on Monday as gold prices hovered over the $2,000 threshold after statements by the United States (US) Federal Reserve (Fed) tempering expectations of multiple interest rate cuts in 2024.
Markets also slid as investors held out for the Bank of Japan’s meeting this week, with speculations fading that the central bank will shift away from its negative interest rate policy.
Gold prices were up $5.19 at 1326 Amman Time, according to GoldPrice.org, at $2,022.95 per ounce, rising 0.16 percent on Monday.
Gold prices are holding over the $2,000 marker at a low of just over $2,016 and a high of $2,026.70 per ounce in the last three days.
As for equities, it is likely that stocks worldwide will end the year on a high, according to Agence France-presse (AFP), after a recent rally in most shares and markets around the world.
The US central bank suggested it will cut rates by 0.75 percent in 2024, after a slew of data showing US inflation cooling and the economy on course for a soft landing.
The Dow Jones and Nasdaq hit record highs on Wall Street last week as tech firms surged, but the buying frenzy slowed Friday, which AFP’s analysts said was to be expected after the latest rally.
Asia struggled at the start of this week, with Hong Kong down one percent and Tokyo, Shanghai, Sydney, Singapore, Mumbai, Taipei, Manila and Jakarta all in the red.
Stocks worldwide dipped after a rally last week that saw equities reach record highs and gold prices broke over the $2,000 threshold - Shutterstock
London, Paris and Frankfurt opened lower, while Wellington, Bangkok and Singapore eked out small gains, as reported by AFP.
The MSCI Asia Pacific Index lost as much as 1.1 percent, marking the biggest drop since December 5, led by a near 1 percent drop in Hong Kong, according to Bloomberg.
US futures edged higher after the S&P 500 ended a six-day rally and the US dollar was steady while two-year Treasury yields reversed gains made on Friday, the New York-based news agency reported.
Shifts in US stocks and markets were triggered Friday by statements from New York Fed President John Williams and a chorus of officials said it’s too early to begin thinking about lowering borrowing costs.
Reuters reported Japan's Nikkei lost 0.7 percent, weighed in part by a firm yen, and MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.3 percent.
South Korea's main index added 0.3 percent, showing no obvious reaction to reports North Korea had fired a ballistic missile off its east coast.
Chinese blue chips CSI300 edged down 0.3 percent, marking five straight weeks of decline.
S&P 500 futures inched up 0.3 percent and Nasdaq futures added 0.2 percent, while EUROSTOXX 50 futures slipped 0.3 percent and FTSE futures 0.1 percent.
Stocks worldwide: Markets summary by AFP and Bloomberg
Tokyo - Nikkei 225: DOWN 0.6 percent at 32,758.98 (close)
Hong Kong - Hang Seng Index: DOWN 1.0 percent at 16,629.23 (close)
Shanghai - Composite: DOWN 0.4 percent at 2,930.80 (close)
London - FTSE 100: DOWN 0.1 percent at 7,565.81
Dollar/yen: UP at 142.33 yen from 142.22 yen on Friday
Euro/dollar: UP at $1.0927 from $1.0897
Pound/dollar: UP at $1.2703 from $1.2677
Euro/pound: UP at 86.01 pence from 85.94 pence
New York - Dow: UP 0.2 percent at 37,305.16 (close)
S&P 500 futures rose 0.3 percent as of 1:42 p.m. Tokyo time
Japan’s Topix fell 0.9 percent
Australia’s S&P/ASX 200 fell 0.3 percent
