Global Stocks Muted with Focus on FOMC Minutes

  • Market Overview

US stocks ended lower on Tuesday, snapping a five-day winning streak amid mixed quarterly results from major retailers and the release of Federal Open Market Committee (FOMC) minutes that showed members expressed a cautious stance on future interest rate hikes. Fed funds futures pricing data also suggests that the central bank will keep interest rates unchanged at its December meeting. The Dow Jones closed 62 points lower, while the S&P 500 and the Nasdaq dipped by 0.20% and 0.60%, respectively.

European stocks remained muted on Tuesday, with the pan-European STOXX 600 near a two-month high amid expectations that central banks in the US and Europe have likely concluded their interest rate hikes. However, European Central Bank President Christine Lagarde urged caution on inflation, emphasising a focus on reaching targets.

Asian stocks were mostly higher on Tuesday, after financial regulators, including the People’s Bank of China, created a list of property developers who were eligible to get low-cost financing. “The move is aimed at giving financial institutions more confidence in lending to the struggling sector. However, it’s unclear whether more distressed players like Country Garden (HK: 2007 ) would be included,” Reuters added. The attempts to ease lending come as the real estate market is embroiled in a crisis exacerbated by a crackdown on excessive borrowing and by a general economic slump. Hong Kong’s Hang Seng jumped 1%, while the Shanghai Composite added 0.50% for the day.

The local bourse finished lower on Tuesday as investors' attention was drawn to the release of the Fed’s most recent meeting minutes, while focus also turned to CPI data to be released later today and the South African Reserve Bank's interest rate decision on Thursday. Most economists expect the central bank to keep rates unchanged. At 19h00, the rand had weakened 1.08% to R18.54/$, 1% to R20.26/€ and 1.38% to R23.23/£.

Oil prices dipped on Tuesday, erasing the previous two sessions' sharp gains, as investors grew cautious ahead of an OPEC+ meeting later this week, where the cartel is set to consider more supply cutbacks due to sluggish global growth. Brent crude was 0.18% weaker at $81.84 a barrel, while bullion added 1.28% to trade at $2 002.67/oz at 19h00.

PSG Wealth Daily Investment Update, 22 November 2023

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  • Tinashe Zavare @Tinashe Zavare
    so it was a sell or buy
    Like 0