Global equity markets moved higher on Tuesday following the release of stronger-than-anticipated economic data from the United States, a development that bolstered investor confidence across major financial markets, according to a Reuters report.
Fresh data showed that the US economy expanded at an annualised rate of 4.3 per cent in the third quarter, significantly exceeding market forecasts of 3.3 per cent growth. The stronger performance was largely attributed to resilient consumer spending, reinforcing expectations that the US Federal Reserve is likely to maintain its current interest rate stance at its January policy meeting.
The upbeat economic outlook helped lift major Wall Street indices. The Dow Jones Industrial Average added 44.14 points to close at 48,406.82, while the S&P 500 gained 5.95 points to finish at 6,884.37. The Nasdaq Composite also edged higher, rising by 7.37 points to 23,435.22. Meanwhile, MSCI’s global equity index recorded a 0.23 per cent increase, closing at 1,017.80.
European equities mirrored the positive sentiment, with the pan-European STOXX 600 briefly touching a record high during trading. Gains were led by healthcare stocks, reflecting strong investor appetite for defensive and growth-oriented sectors.
Shares of Danish pharmaceutical firm Novo Nordisk posted notable gains after the US Food and Drug Administration approved the company’s weight-loss pill. The regulatory approval was seen by investors as a significant competitive advantage in the rapidly expanding global obesity treatment market.
In the foreign exchange market, the Japanese yen strengthened by 0.55 per cent to trade at 156.21 per US dollar, as investors reacted to renewed warnings from Japanese authorities regarding potential currency intervention. The euro edged higher by 0.12 per cent to $1.1775, while the dollar index slipped 0.19 per cent to 98.05.
Bond markets also reflected shifting expectations, with yields on 10-year US Treasury notes rising by 2.71 basis points to 4.198 per cent. The increase signalled growing confidence that US interest rates may remain steady in the near term, supported by the stronger economic data.
Reuters reported that the positive outlook for the US economy triggered a broad-based rally across global markets, extending beyond equities to commodities. Silver prices surged to a record high above $70 per ounce, while gold prices also climbed to fresh highs, underscoring sustained investor demand for both growth and safe-haven assets.
