New York (AFP) – Wall Street stocks resumed their upward climb Tuesday after the previous day’s stutter, as markets weighed expected additional interest rate cuts and favorable seasonal dynamics against valuation concerns. After mixed sessions on Asian and European bourses, New York indices spent the day in positive territory, veering between modest and larger gains. The broad-based S&P 500 ended up about 0.3 percent.
Investors were reassured by the retreat in Treasury bond yields that suggested less worry that shifting monetary policy in Japan would spark volatility. “The early buying interest reflects more of the back-and-forth action of a market playing the seasonality game while remaining cognizant of stretched valuations and concentration risk,” said Briefing.com analyst Patrick O’Hare. He added investors were keeping an eye on the US Treasuries market, a day after a jump in yields on US government bonds contributed to losses in the stock market.
Bets on the US central bank easing monetary policy next week for a third successive meeting have been rising since several Fed decision-makers flagged concerns over labor market weakness. While Tuesday’s calendar was light on government economic data, the National Retail Federation released an upbeat appraisal of the “Black Friday” holiday shopping weekend, a critical period in the US festive season. A record 202.9 million consumers shopped over the five-day stretch, topping estimates, according to the NRF, which said the turnout “reflects a highly engaged consumer who is focused on value, responds to compelling promotions, and seizes upon the opportunity to make the winter holidays special and meaningful.”
Investors are awaiting Wednesday’s monthly report on private-sector jobs, followed by the inflation figures for September on Friday. Major European markets ended mixed. Official data on Tuesday showed eurozone inflation edged up to 2.2 percent in November, veering slightly away from the European Central Bank’s two-percent target. The ECB will announce its rate decision on December 18. The data “comes at a time where some had claimed we could yet see another cut from the ECB, although the likeliness is that their easing cycle is over,” said Joshua Mahony, chief market analyst at Scope Markets.
Across Asia, most markets closed higher Tuesday. Tokyo was flat after erasing early gains, following Monday’s losses triggered by Bank of Japan boss Kazuo Ueda hinting at a possible interest rate hike this month. South Korean tech titan Samsung Electronics jumped more than two percent in Seoul as it launched its first triple-folding phone, even as its price tag over $2,400 places it out of reach for the average customer. Bayer surged more than 12 percent after the Trump administration backed the German agrochemical giant’s latest legal strategy to limit liability connected to claims that a popular weedkiller causes cancer. In a filing to the US Supreme Court, Trump’s Solicitor General John Sauer argued in favor of Bayer’s stance that a federal statute on pesticide labels preempts state laws requiring warnings on products that may be carcinogenic.
Boeing jumped around 10 percent as Chief Financial Officer Jay Malave confirmed expectations that the company expects higher plane deliveries in 2026, a key component of a long-term plan to return to profitability and the generation of free cash flow.
– Key figures at around 2115 GMT –
New York – Dow: UP 0.4 percent at 47,474.46 (close)
New York – S&P 500: UP 0.3 percent at 6,829.37 (close)
New York – Nasdaq Composite: UP 0.6 percent at 23,413.67 (close)
London – FTSE 100: FLAT at 9,701.80 (close)
Paris – CAC 40: DOWN 0.3 percent at 8,074.61 (close)
Frankfurt – DAX: UP 0.5 percent at 23,710.86 (close)
Tokyo – Nikkei 225: FLAT at 49,303.45 (close)
Hong Kong – Hang Seng Index: UP 0.2 percent at 26,095.05 (close)
Shanghai – Composite: DOWN 0.4 percent at 3,897.71 (close)
Dollar/yen: UP at 155.86 yen from 155.46 yen on Monday
Euro/dollar: UP at $1.1622 from $1.1610
Pound/dollar: DOWN at $1.3209 from $1.3213
Euro/pound: UP at 88.00 pence from 87.86 pence
West Texas Intermediate: DOWN 1.2 percent at $58.64 per barrel
Brent North Sea Crude: DOWN 1.1 percent at $62.45 per barrel
burs-jmb/bgs
© 2024 AFP
