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Bloomberg
US stocks fluctuated near all-time highs in light action before the Thanksgiving holiday as traders await the FOMC minutes for clues on the monetary policy.
The S&P 500 Index was little changed—after breaching 2,600 for the first time—as US economic data gave mixed signals. Business equipment orders fell for the first time since June, while jobless claims declined the most in five weeks. Trading in stocks on the index was almost 24 percent below the 30-day average for this time of day. The dollar retreated, Treasuries gained and oil rallied.
“Global financial markets have reached the stage in a shortened holiday week where liquidity comes at an additional premium and assets swing violently on seemingly inconsequential headlines,†Mark McCormick, North American head of foreign-exchange strategy at Toronto-Dominion Bank, said.
Minutes from the last FOMC meeting, which may have clues about the policy path, were expected to be released on Wednesday. Federal Reserve Chair Janet Yellen, who’s leaving the central bank in February, warned that tightening monetary policy too quickly risks stranding inflation below the Fed’s 2 percent target, giving investors yet more to think about as the bond market in the world’s biggest economy hints at concern over the pace of US economic expansion.
Shares outside the US rallied: The Stoxx Europe 600 Index advanced, following the MSCI Asia Pacific Index, which earlier climbed above its 2007 peak. The MSCI Emerging Market Index gained for the second straight day.
West Texas crude headed for its highest close in more than two years as data showed US oil stockpiles declined in the buildup to next week’s OPEC meeting.
Sterling swung between gains and losses before rising even as growth forecasts for the UK were cut in the latest budget, while Britain’s exporter-heavy FTSE 100 Index stayed higher.
The euro gained as efforts continued to end Germany’s political impasse. Minutes from the European Central Bank’s October meeting due on Thursday could show dissent in the discussion about tapering. In Asia, Singapore 3Q GDP is due on Thursday. New Zealand October trade and South Korea November consumer confidence are due later in the week.
The S&P 500 Index gained less than 0.05 percent at 10:11 am New York time. The Stoxx Europe 600 Index increased 0.2 percent, the highest in almost two weeks. The UK’s FTSE 100 Index gained 0.5 percent. Germany’s DAX Index fell 0.4 percent. The MSCI Emerging Market Index jumped 0.6 percent to the highest in more than six years.
The Bloomberg Dollar Spot Index decreased 0.3 percent. The euro rose 0.4 percent to $1.178. The British pound gained 0.2 percent to $1.3271, hitting its strongest in more than three weeks.
The yield on 10-year Treasuries fell one basis point to 2.35 percent.
Australia’s S&P/ASX 200 Index rose 0.4 percent. South Korea’s Kospi index added 0.4 percent. The Hang Seng Index jumped 0.6 percent as Chinese financial shares climbed. The Shanghai Composite Index gained 0.6 percent. The MSCI Asia Pacific Index advanced 0.7 percent. The Japanese yen increased 0.4 percent to 111.97 per dollar, the strongest in almost six weeks.