Global stock rally pauses before key economic data

Bloomberg

Global stocks paused amid their best monthly gains in three decades as investors awaited a slew of economic indicators that could support the rally in risk assets.
The Stoxx Europe 600 Index drifted at the open, as cyclicals such as mining and energy firms fell, offsetting advances in defensives including utility shares. Bank stocks edged higher following a report that Eurozone lenders may be able to resume dividend payments next year if their balance sheets are strong enough.
S&P 500 futures edged up after the underlying index closed at a record on November 24. A raft of indicators were due on Wednesday, from jobless claims to readings on consumer confidence and personal income. A gauge of Asia-Pacific shares gave up an earlier 1.1% gain. Positive vaccine news as well as the formal start of President-elect Joe Biden’s transition to power — including the selection of Janet Yellen as Treasury secretary — have fuelled optimism about the outlook. At the same time, restrictions to curb surging coronavirus infections threaten to impede the global economic recovery. The MSCI gauge of global shares remains up about 13% in November, set for the best month since it began in 1988.
In addition to the US economic data on Wednesday, traders were expected to keep an eye on minutes of the most recent Federal Open Market Committee meeting.
“Now, there’s big event risk up ahead: FOMC minutes,” said Ilya Spivak, head Asia-Pacific strategist at DailyFX.
“The worry is that the Fed will continue to signal that they’re keeping to a hands-off posture. No tightening, but no new easing either.”
Elsewhere, oil held above $45 a barrel in New York, and copper touched the highest since 2014.
Elsewhere, Bitcoin retreated after topping $19,000.
Minutes of the most recent Federal Open Market Committee meeting were due on Wednesday. US jobless claims, GDP and personal spending data come Wednesday. UK Chancellor of the Exchequer will lay out spending plan on Wednesday. Thursday sees a policy decision and briefing from the Bank of Korea. US celebrates the Thanksgiving holiday on Thursday.
The weekends with Black Friday, the traditional start of the US holiday shopping season.
Futures on the S&P 500 Index gained 0.1% in London. The Stoxx Europe 600 Index increased 0.1%. The MSCI Asia Pacific Index was little changed. The MSCI Emerging Market Index fell 0.3%.
The Bloomberg Dollar Spot Index declined 0.2%. The euro jumped 0.3% to $1.1926. The British pound increased 0.2% to $1.3379. The onshore yuan strengthened 0.2% to 6.58 per dollar. The Japanese yen strengthened 0.1% to 104.37 per dollar.
The yield on 10-year Treasuries was unchanged at 0.88%. The yield on two-year Treasuries was unchanged at 0.16%. Germany’s 10-year yield advanced one basis point to -0.56%. Britain’s 10-year yield jumped one basis point to 0.338%. Japan’s 10-year yield declined less than one basis point to 0.021%.
West Texas Intermediate crude increased 1.3% to $45.50 a barrel. Brent crude gained 1.5% to $48.58 a barrel. Gold strengthened 0.3% to $1,812.82 an ounce.