Global markets reach unprecedented peaks, US dollar strengthens following Federal Reserve's interest rate reduction
Global Markets Wrap: 2nd November
The stock market around the world saw mixed results on Thursday, with some indices setting new records, while others experienced slight declines. The S&P 500 and the Nasdaq Composite both posted gains, with the S&P 500 rising 0.68% and the Nasdaq Composite up by 1.15%. The Dow Jones Industrial Average saw a more modest increase of 0.33%.
MSCI's gauge of stocks across the globe rose 0.39% on Thursday, setting a new record, reflecting the overall positive sentiment in the global markets. However, oil prices fell, with Brent crude dropping 0.68% to $67.49 a barrel, and U.S. WTI falling 0.73% to $63.58.
The euro weakened 0.27% to $1.178, while the sterling weakened 0.57% to $1.3548. The dollar strengthened against several major currencies, including the Swiss franc and the Japanese yen, rising 0.47% and 0.66% respectively. The Norwegian krone remained near a three-year high.
In the bond market, the yield on benchmark U.S. 10-year notes rose 4.2 basis points to 4.118%, while the yield on the benchmark German 10-year Bunds increased 4.1 basis points to 2.718%.
Central banks were active this week, with the Federal Reserve cutting interest rates by 25 basis points on Wednesday. The Bank of England kept rates unchanged on Thursday, but announced plans to slow the annual pace at which it sells gilts from 100 billion pounds to 70 billion pounds. Meanwhile, Norway's central bank cut its policy interest rate by 25 basis points to 4.0%.
In corporate news, Intel's stock price jumped more than 25% on Thursday due to Nvidia's announcement of a $5 billion investment. Nvidia's shares were up 2.6% on Thursday, following the news.
Economic and political events also had an impact on markets. Germany's parliament approved the nation's first annual budget since fiscal reforms, while hundreds of thousands protested against austerity measures in France.
Gold prices took a breather from record highs, falling 0.55% to $3,639.52 an ounce. The week began with Nvidia's investment of $5 billion in the US chip manufacturer Intel, a move that is expected to boost the technology sector.
Overall, the global markets showed a mix of positive and negative trends, with stocks, bonds, and currencies all reacting to a variety of factors. As we move into the weekend, investors will be keeping a close eye on these developments and preparing for the week ahead.
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