Markets in limbo for Fed minutes as stocks worldwide tumbled after early-day rally
ALBAWABA – Stocks worldwide stumbled on weakening demand after rallying in early sessions on Tuesday as gold prices soared and markets held out for the United States (US) Federal Reserve (Fed) minutes of meeting, to come out later today.
Gold prices fluctuated on an overall upward trajectory, rising more than $10 on the ounce in early sessions, before dropping then parring most of the losses by 1554 Amman time.
Spot gold prices rose 0.35 percent overall on Tuesday, up $6.94, at $1,988.26 per ounce, having peaked at over $1992 on the ounce by midday, according to GoldPrice.org.
Gold prices dip on higher risk appetite, which in turn drives stocks worldwide higher - Shutterstock
Other safe havens dropped as markets anticipate the Fed is done hiking US interest rates for now, with investors even pricing in a rate cut by mid-2024, Reuters reported.
The US dollar hit its lowest level since mid-September at 147.16 yen and was last down 0.61 percent at 147.45, the Canada-based news agency reported. With the Dollar index at its lowest since late August at 103.17, and emerging-market currencies gaining the most since 2017.
US yields tumbled as the 10-year Treasury yield fell for a fourth session running on Tuesday to 4.39 percent, having fallen on Monday in the wake of a solid auction of 20-year bonds. Yields dropped from a 16-year high of above 5 percent just last month.
Stocks worldwide mixed as oil prices slip and gold prices rise
Asian markets started Tuesday on the front foot but ran out of gas as towards the end of the sessions, according to Agence France-Presse (AFP).
Hong Kong dipped even after behemoth Alibaba jumped more than 2 percent to extend its rebound after diving 10 percent on Friday on news it had cancelled the spinoff of its cloud computing arm.
Tokyo, Singapore, Jakarta and Wellington also fell, while Shanghai was flat. Whereas Sydney, Seoul, Mumbai, Taipei, Bangkok and Manila were all up.
Stocks worldwide diverge on different factors pertaining to market-specific inputs but they all react to safe-haven changes, such as gold prices and treasuries, as well as the US dollar - Shutterstock
In Europe, London and Paris both retreated while Frankfurt edged upwards.
Oil prices also fell as traders held out for the upcoming meeting of the Organization of Petroleum Exporting Countries and its allies (OPEC+) as to whether additional cuts will ensue.
In the US, an overnight rally on Wall Street boosted demand for risk assets.
US contracts were little changed after the S&P 500 had its strongest close since August and the Nasdaq 100 hit a 22-month high, according to Bloomberg.
Stocks worldwide: Markets summary by AFP and Bloomberg
S&P 500 futures were unchanged as of 6:13 a.m. London time
Nikkei 225 futures (OSE) were little changed
S&P/ASX 200 futures were little changed
Japan’s Topix fell 0.2 percent
Hong Kong’s Hang Seng rose 0.4 percent
The Shanghai Composite rose 0.1 percent
Euro Stoxx 50 futures were little changed
London - FTSE 100: DOWN 0.4 percent at 7,464.66 points
Paris - CAC 40: DOWN 0.2 percent at 7,235.10
Frankfurt - DAX: UP 0.2 percent at 15,930.48
EURO STOXX 50: FLAT at 4,340.83
Tokyo - Nikkei 225: DOWN 0.1 percent at 33,354.14 (close)
Hong Kong - Hang Seng Index: DOWN 0.3 percent at 17,733.89 (close)
Shanghai - Composite: FLAT at 3,067.93 (close)
New York - Dow: UP 0.6 percent at 35,151.04 (close)
Euro/dollar: UP at $1.0947 from $1.0940 on Monday
Pound/dollar: UP at $1.2534 from $1.2505
Dollar/yen: DOWN at 147.71 yen from 148.39 yen
Euro/pound: UP at 88.38 pence from 88.50 pence
