Worldwide markets experience mixed performance due to Fed uncertainties, geopolitical tensions
Date
11/21/2024 1:07:43 AM
(MENAFN) Global markets experienced mixed performance on Tuesday as uncertainties surrounding the Fed's future policies and rising geopolitical tensions dominated, while all eyes were on chipmaker Nvidia’s upcoming balance sheet announcement.
Risk appetite in global markets decreased as tensions between Russia and Ukraine heightened, benefiting European stock markets.
Ukraine reported a nighttime attack on Russia’s Bryansk region using US-made long-range missiles (ATACMS), and Russian President Vladimir Putin endorsed a nuclear doctrine permitting the use of nuclear weapons in response to ballistic missile attacks.
This led to increased demand for safe-haven assets, with gold rising by 1 percent per ounce on Tuesday. Bond markets saw heavy buying, with the US 10-Year Futures bond dropping as low as 4.34 percent before closing the day at 4.39 percent.
Concerns over the possible revival of trade wars, prompted by President-elect Donald Trump’s proposed corporate tax cuts and high tariffs on imports in the US, made estimates challenging.
Meanwhile, Fed officials indicated that the bank’s rate cuts reflect confidence in inflation moving toward the 2 percent target.
Money markets estimate a 59 percent probability that the Fed will cut interest rates in December, with a 41 percent chance that rates will remain unchanged.
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