Business Maverick: Stocks climb, dollar falls on slower fed rate path: markets wrap

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A gauge of global stocks headed for the highest level in more than two months on Thursday and the dollar fell after Federal Reserve meeting minutes showed support for tapering interest-rate increases.

Japanese, South Korean and Australian equities benchmarks advanced while Chinese gauges fluctuated. US futures climbed after the S&P 500 closed at a two-month high on Wednesday before the Thanksgiving holiday.

The moves in Hong Kong and the mainland came as investors weighed the impact of record Covid-19 cases against signs of loosening monetary conditions. Official commentsindicated the People’s Bank of China would allow banks to reduce capital reserves to stimulate growth. China’s Covid-Zero policy has had “a significant effect on consumption” while the property crisis is “affecting investment in the sector and affecting property developers,” Gita Gopinath, first deputy managing director for the International Monetary Fund, said in an interview with Bloomberg Television.

Government bond yields edged lower in Australia and New Zealand after Treasury yields fell on Wednesday along with the dollar. A gauge of the greenback slid further on Thursday to levels not seen since August on a closing price basis. There will be no trading in Treasuries due to the US holiday.moderateThis adds weight to expectations the central bank will raise rates by 50 basis points next month, ending a run of jumbo 75 basis point increases.

 

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