(Updates as US markets approach)
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The Fed’s Waller downplays recent inflation data
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Brainard says the Fed is likely to slow rate hikes soon
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Beijing announces property support, COVID measures
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Biden meets with Xi of China at the G20 meeting
By Chuck Mikolajczak
NEW YORK, Nov 14 (Reuters) – Global stocks fell in choppy trade on Monday and U.S. bond yields rose as investors weighed comments from Federal Reserve officials to try to determine the central bank’s path to rate hikes.
Equities rose last week and U.S. Treasuries fell after consumer price data showed stubbornly high inflation may finally be starting to slow and give the Fed room to scale back its tightening policies, MSCI’s gauge of stocks in pushing the world to its biggest weekly profit ever. two years
But on the back of the equity rally, Federal Reserve Governor Christopher Waller said on Sunday that even if the central bank could consider slowing the pace of rate hikes at its next meeting, it should not be considered a “softening” in the fight to exit. reduced inflation, and while the data was “good news” it was “just a data point.”
Stocks briefly erased early losses and edged higher, while bond yields rose from earlier highs after Vice Chairman Lael Brainard said on Monday that the central bank would soon slow rate hikes, but stressed that The Fed still has more work to do.
Eric Kuby, chief investment officer at North Star Investment Management Corp.
On Wall Street, the S&P 500 fell after posting its biggest weekly gain since last June, led by declines in real estate and consumer shares. Amazon.com fell 2.28% after reports that the online retailer plans to cut around 10,000 jobs in corporate and technology roles.
The Dow Jones Industrial Average was down 211.16 points, or 0.63%, to 33,536.7, the S&P 500 was down 35.68 points, or 0.89%, to 3,957.25 and the Nasdaq Composite was down 127.11.2%. 2.11% down, i.e. 127,111.2% or 0.6% i.e.
The pan-European STOXX 600 index rose 0.14% and MSCI’s benchmark of global stocks fell 0.59%.
Investors will be looking at inflation when the US producer price index is released on Tuesday, when a number of Fed officials are scheduled to speak this week.
Benchmark 10-year notes rose 4.2 basis points to 3.871% from 3.829% late on Thursday. The bond market was closed on Friday for the Warriors’ Day holiday.
The two-year yield increased by 8% from 4.326% to 4.406%.
Conversely, continued comments from European Central Bank policymaker Fabio Panetta and Cypriot politician Constantinos Herodotou helped lower European bond yields, although short-date rates remained near multi-year highs hit recently.
Germany’s 2-year government bond yield rose 0.2 basis points to 2.118% from 2.116%, after rising to 2.252% last week, the highest since 2008.
After the biggest weekly drop since March 2020 last week, the dollar index rose 0.122% as the greenback gave up earlier gains, while the euro fell 0.23% to $1.0328.
US-listed Chinese companies have urged financial institutions to provide more support to stressed property developers amid signs the government may relax some of its strict COVID-19 policies, according to regulatory filings. Shares of e-commerce company Alibaba.com rose 0.79 percent.
US President Joe Biden met with Chinese President Xi Jinping on the sidelines of the G20 summit on Monday, and the two stressed the need for better dialogue between their nations and for the two sides to establish a mechanism for more dialogue.
In cryptocurrencies, bitcoin fell 2.59 percent to $16,320.60 after falling below $16,000 for the first time since Thursday, as investors continued to assess the fallout from last week’s collapse of cryptocurrency exchange FTX.
(Reporting by Chuck Mikolajczak; Additional reporting by Ankika Biswas and Lewis Krauskopf; Editing by Jan Harvey, Chizu Nomiyama and Rosalba O’Brien)
