World shares rise, U.S. Treasury yields fall ahead of Fed minutes

  • Stocks on Wall Street closed higher
  • Benchmark 10-year yields are falling
  • The US dollar is retreating
  • Crude oil prices rose 1%
  • Win gold in a safe haven

NEW YORK, Nov 22 (Reuters) – Global shares 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 China’s COVID-19 restrictions weighed on to the mood.

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

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

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“People will be studying those minutes word for word to see if they’re going to go with the Fed’s official statement versus what Powell’s press conference implied, which is that they’re not going to look at a cumulative effect when considering when you stop this tightening,” said Tom Plumb, portfolio manager at Plumb Balanced Fund in Madison, Wisconsin.

The MSCI All-World stock index (.MIWD00000PUS) rose 1.18%, while European shares (.STOXX) gained 0.73%.

Reference yields on 10-year treasury bonds fell to 3.7634%, while the yield on 30-year bonds fell to 3.8325%.

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

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

“We’re seeing tech, consumer discretionary and energy leading the way down, while consumer staples are leading the way up, so those are signs that investors are positioning for the downside,” said Michael Ashley Schulman, chief investment officer at Running Point Capital in Los Angeles. California.

The US dollar retreated across the board, giving up some of the previous session’s gains, as investors shrugged off concerns over the COVID outbreak in China, fueling demand for riskier currencies. The dollar index fell 0.566% and the euro rose 0.58% to $1.03.

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Crude oil prices rose about 1% after Saudi Arabia said OPEC+ was sticking with 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 settled above last session’s lows as a decline in the dollar and benchmark U.S. Treasury yields were offset by gains in stocks. Spot gold added 0.1% to $1,740.19 an ounce, while U.S. gold futures rose 0.23% to $1,738.30 an ounce.

Reporting by Chibuike Oguh in New York; Editing: David Gregorio and Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

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