Global markets today: World stocks advance as bond yields dip after dovish comments from Fed, ECB officials

MSCI’s gauge of stocks across the globe gained 1.42%.

Crude oil prices eased a day after rising sharply on clashes between Israeli military and Palestinian group Hamas.

The US crude oil benchmark fell 0.81% at $85.68 per barrel and Brent crude was at $87.42, down 0.83%.

Israel on Tuesday attacked the Gaza Strip with the fiercest air strikes in its 75-year conflict with the Palestinians, despite a threat from Hamas to execute a captive for each home hit.

Longer-dated euro zone bonds and US treasuries also rallied.

US stocks

US stock indices rallied on Tuesday after Federal Reserve officials on Monday indicated that rising yields on long-term US treasury bonds could steer the central bank from further raising interest rate in the short term.

In afternoon trading, the S&P 500 was 0.8% higher. The Dow Jones Industrial Average was up 189 points, or 0.6%. The Nasdaq composite was 0.8% higher.

The yield on the 10-year treasury dropped at 4.65% from 4.80% late Friday. The 2-year treasury yield sank to 4.97% from 5.09%.

Europe

European stocks rebounded sharply on Tuesday as dovish comments from European Central Bank (ECB) policymakers bolstered investors’ sentiments.

The pan-European STOXX 600 jumped 2% higher, its biggest one-day percentage gain in nearly a year.

Britain’s FTSE 100 edged up 1.8% at 7,628.21. Germany’s DAX rose 2% at 15,423.52. France’s CAC 40 surged 2% at 7,162.43.

Asia

Asian stock markets mostly rose on Tuesday.

Hong Kong’s Hang Seng Index rose 0.8% at 17,664.73. China’s Shanghai Composite fell 0.7% at 3,075.24.

Japan’s Nikkei 225 edged up 2.4% at 31,746.53.

Australia’s S&P/ASX 200 index closed 1% higher. New Zealand’s benchmark S&P/NZX 50 index climbed 0.8%.

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Updated: 11 Oct 2023, 12:20 AM IST