Global Markets: Stocks Steady, Dollar Holds Low Ahead of US Data

Investors think the Federal Reserve won't raise rates, keeping global stocks steady. The dollar stays low, and gold remains above $2,000 an ounce.

Key Points:

• The MSCI All-World index stays the same, having the best month in three years, up 8.5% in November.

• The dollar is down 3.2% this month, near its lowest in three months.

• European stocks fall 0.6%, and U.S. stock futures drop 0.1%.

Focus on Data:

• Traders wait for data on the U.S. economy in Q3, along with consumer inflation and spending.

• Thursday's U.S. October personal consumption expenditures report (PCE) and euro zone consumer inflation will give more clarity on prices and monetary policy.

• U.S. consumer inflation is at 3.2%, and core PCE is likely to follow.

• The spending part of the PCE report is essential for insights into the "soft landing" scenario.

Inflation and Gold:

• Gold prices stay high above $2,000, pushed by a weaker dollar and lower Treasury yields.

• Central banks, including the ECB, remain committed to fighting inflation, as seen in ECB President Christine Lagarde's recent comments.

Upcoming Events:

• Fed Chair Jerome Powell's speech on Friday will be crucial for understanding future rate moves.

• Benchmark 10-year Treasury yields are up 2 basis points at 4.41%, giving back some gains after lower-than-expected new home sales.

Oil Market and OPEC+ Meeting:

• Oil prices rise, with Brent crude up 1.1% at $80.83 a barrel and U.S. crude futures up 1.1% to $75.68.

• The OPEC+ meeting on Thursday could bring surprises to the oil market regarding production targets.

Analyst Perspective:

• Analysts say the spending data will challenge the current "soft landing" scenario.

• The oil market may see surprises from the OPEC+ meeting, adding uncertainty about production cuts.

Global markets stay stable as investors trust the Fed's decision on rates. Key economic data and events, including the PCE report and OPEC+ meeting, will shape market sentiments in the coming days.

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