Global markets today: US stocks end higher after Fed minutes

Investors across the  global markets were cautious amid the ongoing conflict between Israel and Palestinian group Hamas in the Middle East. 

As Israel continues to pound Gaza Strip to root out Hamas, Israeli Prime Minister Benjamin Netanyahu and a leading opposition figure on Wednesday formed a war-time cabinet to oversee the fight to avenge a stunning weekend attack by Palestinian group.

US stocks

US stocks rose on Wednesday after the release of the minutes from the Federal Reserve’s September meeting.

The S&P 500 gained 18.56 points, or 0.43%, to end at 4,376.80 points. The Nasdaq Composite gained 96.83 points, or 0.71%, at 13,659.68. The Dow Jones Industrial Average rose 57.27 points, or 0.17%, at 33,796.57.

All Fed policymakers had agreed that the central bank should proceed carefully on rate decisions, and incoming data would help determine whether another hike was needed in coming months, said the minutes.

“A vast majority of participants continued to judge the future path of the economy as highly uncertain,” said the minutes.

Data showed that US producer prices rose more than expected in September.

The yield on the 10-year treasury fell at 4.59% from 4.66% late Tuesday. The 2-year treasury yield ticked up to 5.00% from 4.97%.

The US dollar gained at 149.26 Japanese yen from 148.74. The euro rose at $1.0607 from $1.0599.

Crude oil

Oil prices fell more than 2%. The US crude oil benchmark for November delivery fell $2.48 at $83.49 a barrel. Brent crude for December delivery lost $1.83 at $85.82 a barrel.

Europe

European stocks index edged higher on Wednesday on Novo Nordisk’s positive update on its diabetes drug Ozempic.

The pan-European STOXX 600 index rose 0.2% to hit a near three-week high.

On Tuesday, the STOXX 600 rallied almost 2% in its biggest one-day gain this year.

Britain’s FTSE 100 lost 0.1% at 7,620.03. Germany’s DAX edged up 0.2% at 15,460.01. France’s CAC 40 fell 0.4% at 7,131.21.

Gas prices in Europe rose to six-month high on supply constraints.

Asia 

Asian stock markets gained on Wednesday on a report that China is considering a large burst of economic stimulus.

Hong Kong’s Hang Seng Index rose 1.3% at 17,893.10. China’s Shanghai Composite added 0.1% at 3,078.96.

Japan’s Nikkei 225 edged up 0.6% at 31,936.51.

Australia’s S&P/ASX 200 index closed 0.7% higher at 7,088.4 points. New Zealand’s benchmark S&P/NZX 50 index rose 0.1%.

Bullion 

Gold for December delivery rose $12 at $1,887.30 an ounce. Silver for December delivery added 18 cents at $22.13 an ounce.

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Updated: 12 Oct 2023, 01:42 AM IST