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- World equity markets made gains while the U.S. dollar hit new lows against major currencies on Tuesday after Federal Reserve officials reaffirmed its ongoing low interest rate policy that eased inflation concerns
- Overnight in Asia, the region’s main regional equity gauges climbed, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 1.5 per cent at a two-week high
- On Wall Street, all three benchmark indexes closed lower on Tuesday as concerns over the speed and trajectory of the rise in prices persisted among traders
- Oil prices edged a shade higher on Tuesday as rising demand from the approach of the Northern Hemisphere’s summer driving season and lifting of coronavirus restrictions offset worries that Iran’s possible return to the market will cause a supply glut
World equity markets made gains while the U.S. dollar hit new lows against major currencies on Tuesday after Federal Reserve officials reaffirmed its ongoing low interest rate policy that eased inflation concerns.
MSCI’s broadest index of world stocks was up 0.15 per cent at 707.26. The STOXX index of leading European shares gained 0.03 per cent to 445.20 after hitting a record high of 447.15.
Overnight in Asia, the region’s main regional equity gauges climbed, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 1.5 per cent at a two-week high.
ASX futures declined 35 points or 0.49 per cent, signalling a retreat from yesterday’s two-week closing peak.
Oil prices edged a shade higher on Tuesday as rising demand from the approach of the Northern Hemisphere’s summer driving season and lifting of coronavirus restrictions offset worries that Iran’s possible return to the market will cause a supply glut.
Brent futures rose 19 cents, or 0.3 per cent, to settle at $68.65 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 2 cents to settle at $66.07.
Gold prices scaled a more than four-month peak, as the dollar and U.S. Treasury yields slumped after data showed consumer confidence dropped slightly in the U.S.
Spot gold rose 0.97 per cent to $1,899.2640 per ounce, having earlier hit its highest since January 8 at $1,895.56. U.S. gold futures gained 0.82 per cent to $1,899.9.
In the U.S. Fed Board Governor Lael Brainard assuaged inflation concerns, saying she expects that price spikes associated with supply bottlenecks and the reopening of the economy to “subside over time.”
James Bullard, president of the St. Louis Federal Reserve, also said on Monday that while still in the pandemic, it was not the time to talk more about changing the parameters of monetary policy.
Those messages were consistent with what Fed Chairman Jerome Powell has said repeatedly over recent weeks.
On Wall Street, all three benchmark indexes closed lower on Tuesday as concerns over the speed and trajectory of the rise in prices persisted among traders.
The Dow Jones Industrial Average fell 0.24 per cent, to 34,312.46, the S&P 500 lost 0.21 per cent, to 4,188.13 and the Nasdaq Composite dropped 0.03 per cent, to 13,657.17.
Some of the most active sectors on Wall Street include technology, industrials, customer discretionary, communication services and real estate.
As investors weighed the Fed’s soothing words that put to rest tapering worries for the time being, the dollar hit four-and-a-half-month lows. The benchmark 10-year Treasury note also hit two-week lows and was at 1.56 per cent in afternoon trading, down from 1.608% late on Monday.
The yield curve flattened for a fourth straight session, as participants bought the long end of the curve on the view that price pressures would be stable for the rest of the year.
The dollar index, which measures the currency against major rivals, was down 0.2 per cent in the afternoon session, after having fallen as much as 0.3 per cent to 89.533, its lowest since Jan. 7.
