Shafaq News / The U.S. dollar dropped to its lowest in more than two months on Monday on expectations that U.S. interest rates have peaked, while Wall Street’s three major stock indexes closed at multi-month highs.
Global equities were broadly higher, U.S. treasury yields headed lower after auction and global oil futures gained $2 on the prospect of supply cuts.
The MSCI World Equity Index gained 0.71%.
Europe’s benchmark STOXX index inched up 0.1%, with energy stocks leading gains. The healthcare sector fell after shares in Bayer dropped to their lowest in 14 years.
On Wall Street, the Nasdaq saw its highest close since July 31 while the S&P 500 registered its highest closing level since Aug. 1.
The tech-heavy Nasdaq led gains as shares of Microsoft hit record highs. The Dow Jones Industrial Average rose 203.76 points, or 0.58%, to 35,151.04, the S&P 500 gained 33.36 points, or 0.74%, to 4,547.38 and the Nasdaq Composite added 159.05 points, or 1.13%, to 14,284.53.
The dollar index fell 0.42% and touched its weakest since the start of September, as investors appeared to solidify bets that the Fed could start cutting interest rates next year.
Japanese shares hit highs not seen since 1990, thanks to strong earnings and offshore demand that fueled a three-week winning streak. The Nikkei ran into profit taking but was still up 8.2% for the month so far with the Topix not far behind.
Trading was expected to be muted for much of the week ahead of Thursday’s U.S. Thanksgiving holiday. Black Friday sales will test the pulse of the consumer-driven U.S. economy this week.
“The historical pattern over the last five years suggests the shortened holiday week typically enjoys modest gains,” said Quincy Krosby, chief global strategist for LPL Financial.
“With concerns over the resiliency of consumer spending, however, the market can be affected by any indication that Black Friday doesn’t witness the throngs of consumers out hunting for bargains, or indications that the start to Cyber Monday won’t result in the billions of dollars that are spent online,” Krosby added.
Minutes of the Fed’s last meeting will offer some color on policy makers’ thinking as they held rates steady for a second time.