Global Markets Mixed as Dollar Drops on Fed Rate-Cut Hopes, Gold Reaches New Record
By Dow Jones Newswires StaffU.S. stock futures were mixed. The dollar dropped after the Federal Reserve's Beige Book economic report confirmed expectations of further interest-rate cuts as the U.S. economy's momentum slows. Market watchers see a 25-basis-point cut later this month, with some expecting another in December.Simmering trade tensions between the U.S. and China put downward pressure on markets. U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent criticized China's efforts to curb exports of rare-earth metals. However, they left the door open to discussions and potential de-escalation in talks between President Trump and Chinese leader Xi Jinping at the end of this month.The weaker dollar and uncertainty kept safe-haven demand for gold high.U.S. stock futures for the S&P 500 were up 0.4%. Futures for the Dow Jones Industrial Average slipped 0.04% and Nasdaq futures were up 0.7%.European indices were down in early trading, except for Switzerland, where shares in consumer-goods giant Nestle rose sharply on the back of strong nine-month results.In Asia, stocks were mixed as Japan's Nikkei 225 index gained 1.3%, whereas Hong Kong's Hang Seng declined 0.1%. China's benchmark Shanghai Composite gained 0.1%.Dollar fell on expectations of an interest-rate cut. Sterling remained elevated against the dollar and traded steady versus the euro, showing little reaction after data showed the U.K. economy grew in line with expectations in August. Sterling rises 0.1% to $1.3420. Euro is down 0.1% at 0.8678 pounds. The DXY dollar index falls 0.2% to 98.626.Eurozone bond yields edged higher in opening trade. Some analysts expect the spread between French government bonds, or OAT, and German bonds, or Bunds, could tighten further below 80 basis points as French Prime Minister Sebastien Lecornu is seen to survive a vote on confidence. The 10-year OAT-Bund yield spread is 78.6 basis points. U.S. 10-year Treasury yields were down nearly 2 basis points at 4.028%.Oil prices rose after President Trump said Indian Prime Minister Narendra Modi pledged to halt purchases of Russian oil. The move could disrupt global flows and gives oil a boost amid fears of a supply glut. Brent crude and WTI rise 0.9% to $62.45 and $58.33 a barrel, respectively.Gold rose to a new record high, extending the previous session's gains as U.S.-China trade tensions, the federal government shutdown and rate-cut bets boost demand. In early trade, futures in New York were up 1% to $4,244.20 a troy ounce after reaching $4,255.40 earlier. Spot gold climbed 1.6% to $4,207.77Write to Barcelona Editors at [email protected]