November 28, 2022

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Global stock markets rise, US yields fall before employment data

Global stock markets rise, US yields fall before employment data
  • Wall Street stocks closed higher
  • Decreased 10-year benchmark returns
  • Brent crude prices rose 1%.
  • The US dollar eases
  • Gold as a safe haven rises above 1%

NEW YORK (Reuters) – Global stock markets rose while US yields fell on Thursday after less-than-expected private jobs data raised hopes that the US economy is likely to cool off and the Federal Reserve may be persuaded to adjust its hawkish stance. on interest rates and inflation.

Thursday’s ADP National Employment Report showed that private jobs rose by 128,000 jobs in May, well below the consensus estimate of 300,000 jobs, and indicated that demand for labor was beginning to slow. Read more

Sandy Feller, portfolio manager at Villere & Co in New Orleans, said that if the private jobs data is confirmed by the Labor Department’s more comprehensive jobs report on Friday, the Fed is unlikely to continue the pace of rate hikes.

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“Bad news is basically good news and good news is bad news. That means the economy might cool off a bit and the Fed can cool off from its highs because that basically has everything in control now,” Villiers said.

MSCI World Stock Index (.MIWD00000PUS.), which measures stocks in 50 countries, was up 1.42%. The pan-European Stoxx 600 index rose 0.57 percent.

US Treasury yields eased from recent gains ahead of the closely watched employment report and what it could indicate about the likely path of interest rates.

Two Fed officials, Fed Vice Chair Lyle Brainard and Cleveland Fed President Loretta Meester, emphasized Thursday that the US central bank is likely to continue raising interest rates at a rapid pace unless it sees moderation in inflation. Read more

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The benchmark 10-year note was trading down 2.9149%, with the two-year note trading down 2.6438%.

On Wall Street, the S&P and Dow indices rebounded from the previous session’s losses and closed higher, as stocks in the technology, consumer appreciation, telecoms services and financial sectors led the recovery. Read more

Dow Jones Industrial Average (.DJI) The S&P 500 rose 1.33% to 33248.28 (.SPX) It rose 1.84% to 4176.82 and the Nasdaq Composite Index (nineteenth) It added 2.69% to 12,316.90.

Oil prices stabilized higher after US crude inventories fell more than expected amid rising fuel demand and OPEC+ agreed to increase crude production to offset lower Russian production. Read more

Brent crude futures rose 1.69% to $118.26 a barrel, while US West Texas Intermediate crude rose 1.97% to $117.53.

The US dollar has declined overall, giving up some of its gains in recent sessions as strong risk sentiment encouraged investors to look for higher-yielding currencies. Read more

The dollar index fell 0.78 percent, with the euro rising 0.94 percent to $1.0746.

Gold prices rose more than 1%, buoyed by a drop in the dollar and private payroll data in the United States. Spot gold rose 1.3% to $1,868.59 an ounce, while US gold futures rose 1.38% to $1,868.70 an ounce.

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Additional reporting by Shibuike Ojo in New York. Editing by Jonathan Otis and Will Dunham

Our criteria: Thomson Reuters Trust Principles.