Global equities showed minimal movement on Monday as investors awaited crucial U.S. and European inflation data later in the week. Meanwhile, gold reached a six-month high, benefitting from a decline in the dollar.
The MSCI’s index of world stocks (.MIWD00000PUS) was marginally down by 0.04%, having experienced a four-week climb and registering a notable 8.7% gain this month. In Europe, the STOXX 600 index (.STOXX) dipped by 0.15%, Germany’s Dax stock index by 0.19%, and Britain’s FTSE 100 (.FTSE) slipped by 0.3%. S&P 500 futures were 0.15% lower.
Recent weeks saw a surge in global stocks as bond yields decreased, fostering investor expectations that central banks might halt interest rate increases and potentially consider cuts. The recent release of the U.S. Federal Reserve minutes confirmed the market’s anticipation that the Fed is currently on pause, prompting rallies in both stocks and bonds.
Investors are turning their attention to Thursday’s release of the Fed’s preferred inflation measure and euro zone consumer inflation figures, seeking direction after the Thanksgiving lull. European Central Bank President Christine Lagarde is set to address the European Parliament on Monday.
Julian Howard, a multi-asset investment director at GAM, noted a relatively quiet day with investors possibly consolidating. Howard currently favors investments in cash-like funds with high yields over significant bets on stocks or bonds.
The yield on the 10-year U.S. Treasury note, a global influence on borrowing costs, was down 1 basis point at 4.470%. The U.S. dollar index, tracking the dollar against six peers, traded 0.16% lower on Monday at 103.27, reflecting a more than 3% decline in November.
Gold reached a six-month high of $2,017.82 per ounce, benefiting from the dollar’s decline. Spot gold last traded up 0.52% at $2,012.39, with additional support from investor concerns about the Israel-Hamas conflict.
Oil prices experienced a decline, with Brent down 1.08% to $79.70 a barrel and U.S. crude 1.16% lower at $74.65 per barrel. The oil market faces uncertainty ahead of the OPEC+ meeting on Nov. 30, originally slated for Sunday but postponed as producers struggled to find a unanimous position.
Germany’s 10-year bond yield was down 6 basis points at 2.589%, well below the 12-year high of 3.024% recorded in early October. The euro was last up 0.13% at $1.0947. Inflation data for Germany is expected on Wednesday, preceding the euro zone release.
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