FILE PHOTO: Traders work on the floor at the New York Stock Exchange in New York City, U.S., December 2, 2024. REUTERS/Brendan McDermid/File PhotoNEW YORK/ LONDON :MSCI's global equity gauge was lower on Friday while bond yields climbed as investors waited for clues about the future path for interest rates from next week's U.S. Federal Reserve meeting.
Friday's data showed U.S. import prices barely rose in November as increases in food and fuel costs were partially offset by decreases elsewhere, thanks to a strong dollar. “They have to take into account that in an economy where inflation is showing itself at this point to be sticky, and you're very highly likely going to get further fiscal stimulus, deregulation, and some aspect of tariffs coming through, there's just no way you can validate why you keep cutting in that instance,” said Tom Fitzpatrick, head of global market insights at R.J. O'Brien in New York.
MSCI's gauge of stocks across the globe fell 2.30 points, or 0.26 per cent, to 866.11. Europe's STOXX 600 index closed down 0.53 per cent earlier, breaking a three-week winning streak, as investors sought clarity on Europe's rate policy amid concerns about economic growth and a potential trade war. In currencies, the dollar eyed its biggest weekly gain in a month on the prospect of slower U.S. rate cuts next year. Sterling fell after a surprise contraction in UK economic activity while the euro clawed back some recent losses in the wake of the European Central Bank's rate cut on Thursday.
In energy markets, oil prices settled at a three-week high on expectations that more sanctions on Russia and Iran could tighten supplies and that lower U.S. and European interest rates could boost fuel demand.