Global Stock Markets, on Wednesday, January 4, gained for a second straight day driven by upbeat global economic data, as investors await minutes of the Federal Reserve’s December meeting in which the U.S. central bank raised interest rates.
The dollar retreated from a 14-year high against a basket of currencies and oil prices ticked higher on expectations that U.S. crude inventories are falling.
MSCI’s world index, which tracks shares in 46 countries, rose 0.71 percent to a three-week high.
The index was helped by a batch of rosy economic reports from Europe, and got a further boost after U.S. stocks opened higher.
U.S. stocks extended gains into the second trading day of the new year, supported by gains in consumer discretionary stocks.
Investors are waiting for the Federal Reserve to release the minutes of its December meeting in which it raised interest rates. Investors will now pore over the minutes, expected at 2:00 p.m. ET (1900 UTC), to assess policymakers’ view on the economy and U.S. president-elect Donald Trump’s incoming administration.
The Dow Jones Industrial Average rose 32.99 points, or 0.17 percent, to 19,914.75, the S&P 500 gained 9.69 points, or 0.43 percent, to 2,267.52 and the Nasdaq Composite added 34.53 points, or 0.64 percent, to 5,463.61.
European shares edged down from a one-year high with retailers in focus after standout faller Next cut its profit guidance and cautioned on future trade. Europe’s broad FTSEurofirst 300 index fell 0.27 percent to 1,440.67.
The dollar edged down from a 14-year high against a basket of currencies, with investors cautious about increasing bets on the greenback before getting fresh clues on the U.S. economy and the timing of interest rate rises.
In bond markets, U.S. Treasury debt yields edged higher for a second straight day in quiet trading, continuing to benefit from increased market appetite for risk with the rise in stocks and oil prices, as well as an improving global economic environment.
