Wall Street gains value as investors await release of Federal Reserve meeting minutes

Global stocks rose on Tuesday as U.S. Treasury yields fell as investors awaited the release of Federal Reserve meeting minutes for clues on U.S. interest rates and related Chinese restrictions to COVID-19 weighed on sentiment.

The Fed will release minutes from its November policy meeting on Wednesday, offering insight into how officials view economic conditions.

In China, authorities in Beijing have closed parks and museums. In Shanghai, rules have been tightened for people entering the city as the country grapples with a spike in COVID cases, raising concerns about its impact on the economy.

“People are going to look word for word on these minutes to see if it’s going to lean towards the Fed’s official statement versus what Powell’s press conference implied, which is that they weren’t going to look into the cumulative effect to determine when to stop this tightening,” said Tom Plumb, portfolio manager at Plumb Balanced Fund in Madison, Wisconsin.

The MSCI All-World Stock Index rose 1.18%, while European stocks gained 0.73%.

Benchmark 10-year Treasury yields fell to 3.76%, while the yield on the 30-year note fell to 3.83%.

On Wall Street, all three major indexes closed higher, led by gains in technology, energy, healthcare, financials and consumer discretionary.

The Dow Jones Industrial Average rose 1.18% to 34,098.1, the S&P 500 gained 1.36% to 4,003.58 and the Nasdaq Composite added 1.36% to 11,174.41.

“We see that technology, consumer discretionary and energy are leading the downtrend while consumer staples stocks are leading up, these are signs that investors are positioning themselves for a downturn,” Michael said. Ashley Schulman, chief investment officer at Running Point Capital in Los Angeles, California. .

The US dollar retreated across the board, giving back some of the ground gained in the previous session, as investors moved past concerns over COVID surges in China, boosting demand for riskier currencies. The dollar index fell 0.56%, with the euro up 0.58% at $1.03.

Crude prices rose about 1% after Saudi Arabia said OPEC+ was sticking to production cuts and may take further steps to balance the market.

Brent crude rose 1% to $88.36 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 1.1% to $80.95.

Safe-haven gold prices stabilized above last session’s low as the decline in the dollar and benchmark yields on US Treasuries were offset by a rise in equities. Spot gold gained 0.1% to $1,740.19 an ounce, while US gold futures gained 0.23% to $1,738.30 an ounce.


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