Global markets see varied movements due to Fed uncertainties, rising geopolitical tensions
Date
11/21/2024 6:43:26 AM
(MENAFN) Global markets experienced mixed movements on Tuesday as investors grappled with uncertainties surrounding the Federal Reserve’s future policies and rising geopolitical tensions. The escalation of Russia-Ukraine tensions contributed to a decline in risk appetite, which had a positive impact on European stock markets. Ukraine’s reported attack on the Bryansk region in Russia using US-made long-range ATACMS missiles, coupled with Russia's approval of a nuclear doctrine allowing a nuclear response to ballistic missile attacks, led to heightened demand for safe-haven assets.
As a result, gold prices rose by 1 percent per ounce, and bond markets saw increased buying activity. The US 10-Year Futures bond yield fell to a low of 4.34 percent, ending the day at 4.39 percent. These market shifts were further compounded by concerns about potential trade wars, triggered by President-elect Donald Trump’s proposed tax cuts for corporations and high tariffs on imports. Despite these uncertainties, Federal Reserve officials expressed confidence that inflation is moving towards the 2 percent target, leading to expectations of potential rate cuts.
Markets are now looking ahead to Nvidia’s earnings report, which is expected to influence market direction. As one of the largest players in the chipmaking sector with a market cap exceeding USD3 trillion, Nvidia’s performance is seen as a barometer for the health of the broader US economy. Analysts are closely monitoring the results, which will be announced on Wednesday.
In commodities, copper prices rose following a dip to their lowest levels since August, while Brent crude oil started Tuesday at USD72.90 per barrel, down 0.3 percent after a two-day rise. Meanwhile, the cryptocurrency market continued its upward trajectory following Trump's victory, with Bitcoin breaking a record at USD93,905 before settling at around USD92,500. On the stock market, the S&P 500 and Nasdaq saw gains of 0.4 percent and 1.04 percent, respectively, while the Dow Jones fell by 0.3 percent. American index futures started Wednesday on a positive note.
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