Gold prices up on rate cut expectations, stocks worldwide rally as Wall Street hits new highs
ALBAWABA – Stocks worldwide tracked a rally on Wall Street as traders and gold prices rose again as markets bet on the United States (US) Federal Reserve (Fed) slashing interest rates in 2024.
European equity futures edged higher along with Treasuries as traders ignored warnings from Fed officials seeking to rein in rate cut hopes, according to Bloomberg.
Benchmarks across Asia advanced on the rally on Wall Street Tuesday, while gauges in China edged lower.
US Treasury 10-year yields slipped to 3.91 percent and contracts for US stocks traded flat.
Gold prices also pushed towards the all-time highs they hit earlier this month, as rate cut expectations bolstered demand for the precious metal and drove them up to $2,036.11 per ounce.
Bloomberg reported gold prices at $2049.70 per ounce, as of 1429 Amman Time.
Stocks worldwide gold prices surge on rate cut hopes early in 2024
Wall Street saw another strong day, with the Dow finishing at a fifth straight record high, while the S&P 500 approached its own all-time peak, Agence France-Presse (AFP) reported.
Gold prices up on rate cut expectations, stocks worldwide rally as Wall Street hits new highs - Shutterstock
Tokyo and Seoul rose more than one percent, and while there were healthy gains in Hong Kong, Sydney, Mumbai, Bangkok, Singapore, Taipei, Manila and Jakarta, Shanghai and Wellington sank.
London jumped more than one percent at the open too after data showed UK inflation slowed sharply in November. The pound dropped against the US dollar as the news lifted hopes the Bank of England can start cutting rates soon, according to AFP.
Paris and Frankfurt also started in the green.
In the US, markets are on the lookout for the release of the US personal consumption expenditures (PCE) price index, which is the Fed's preferred gauge of inflation, AFP reported.
The advances come even as central bank officials try to push back against rate cut expectations, as inflation seems to be slowing, which set markets up for a healthy end-of-year rally.
Stocks worldwide: Markets summary by Bloomberg and AFP
S&P 500 futures were little changed as of 6:49 am London time.
The S&P 500 rose 0.6 percent
Nasdaq 100 futures were little changed.
The Nasdaq 100 rose 0.5 percent
Hong Kong’s Hang Seng rose 0.5 percent
The Shanghai Composite fell 0.9 percent
Euro Stoxx 50 futures rose 0.1 percent
Tokyo - Nikkei 225: UP 1.4 percent at 33,675.94 (close)
Hong Kong - Hang Seng Index: UP 0.7 percent at 16,613.81 (close)
Shanghai - Composite: DOWN 1.0 percent at 2,902.11 (close)
London - FTSE 100: UP 1.3 percent at 7,740.54
Dollar/yen: DOWN at 143.36 yen from 143.89 yen on Tuesday
Euro/dollar: DOWN at $1.0965 from $1.0979
Pound/dollar: DOWN at $1.2650 from $1.2727
Euro/pound: DOWN at 86.03 pence from 86.25 pence
New York - Dow: UP 0.7 percent at 37,557.92 (close)
