November 3, 2021

Global Equities Hit New Record, USD Rises Ahead of FOMC Meeting

 According to earnings reports, investors are awaiting the outcome of the Federal Reserve (Fed) meeting that has made the world's major stocks soar to hit a new record on Tuesday as a result of rising stocks in the United States (US) and Europe.

All major US stock indices hit daily record highs.

The European STOXX 600 index also set an impressive corporate record followed by the French CAC 40 index which reached its highest level since 2000.

The Australian dollar fell after Reserve Bank of Australia (RBA) sentiment pitched dovish during the first central bank meeting of three central bank meetings held this week.

The MSCI index, which tracks equity performance in 50 countries, showed a 0.14% increase close to a record 749.53. Pan-European STOXX 600 also up 0.14%

On the Wall Street market, the Dow Jones Industrial Average was up 0.39%and the S&P 500 was up 0.37%, while the Nasdaq Composite was up 0.34%.

Asian equities and bonds are mixed as Chinese property developers remain concerned about China Evergrande Group’s growing debt crisis.

Debt swaps from one of the nation’s leading states triggered alarming credit warnings.

Australian government short -term bonds followed suit and the Australian dollar plunged 1.0% to $ 0.7448.

The dollar index, which measures the strength of the US dollar, rose 0.181% even though the market had already taken an earlier position in anticipation of a tapering move by the Fed.

The Euro fell 0.22% to $ 1.1581 while the Yen was strong at 0.01%.

According to chief American economic analyst at Natixis in New York, Joe LaVorgna reports market sentiment is still not looking to strengthen until next year.

Oil prices traded below $ 85 a barrel on Tuesday but still remain near three -year highs ahead of a weekly US supply report that is expected to record a rise in oil inventories while investors await the outcome of the OPEC+ meeting on Thursday.

Brent oil, which was at $ 84.52, was down 0.22% while crude oil was down 0.63% to $ 83.52 a barrel.

Bitcoin peaked again 4.3% to the $ 63,544.84 level.