Global stocks are easing after minutes of the Fed

NEW YORK, May 26 (Reuters) – Global stock markets were broadly bullish on Thursday and bond yields fell as no US Federal Reserve’s latest minutes helped allay immediate concerns about the immediate aftermath. interest rates in economic growth.

Wall Street extended its rally from Wednesday. By midnight, all three major US stock markets had risen more than 1%, with consumer discretion driving the S&P 500 higher.

The MSCI Global Stock Index (.MIWD00000PUS) rose 1.15% at 10:45 a.m. EDT (1445 GMT). Europe’s STOXX 600 (.STOXX) stock index rose 0.74%, while a more restrained sentiment led the broader MSCI Asia-Pacific Index (.MIAPJ0000PUS) to fall 0.01%.

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The Dow Jones Industrial Average (.DJI) rose 460.25 points or 1.43%. the S&P 500 (.SPX) gained 59.69 points or 1.50%. and the Nasdaq Composite (.IXIC) rose 196.69 points or 1.72%.

The minutes of the Fed meeting in May, released on Wednesday, showed interest rate increases of 50 basis points each in June and July with the support of the majority to fight inflation, which alleviates investors’ concerns that the Fed’s aggressive steps could cause recession.

“US stocks are rallying as investors viewed the Fed’s minutes as a commitment only to a gradual (tight) anti-inflation policy and after some retailers gave optimistic outlook,” said OANDA analyst Edward Moya.

However, this positive sentiment was fragile, as policymakers seemed to leave room for themselves to take more aggressive steps if inflation remained at current levels.

“The Fed has pledged to offer two half-unit price increases until the Jackson Hole Banquet, and that has removed the risk of an aggressive tightening in the short term,” Moya said.

Data on Thursday showed that the number of Americans applying for new unemployment benefits fell more than expected last week as the labor market remained tight, with a separate report confirming that the US economy shrank in the first quarter. read more

In Asia, Chinese blue chips (.CSI300) overturned previous losses to increase 0.25% after trying to find direction for most of the session as investors worried about signs of slowing but were comforted by Prime Minister Li Keqiang on stabilizing the troubled economy.

South Korea’s central bank has raised interest rates for the second straight meeting as it faces consumer inflation at a 13-year high. read more

In foreign exchange markets, the dollar fell closer to a one-month low on Tuesday. The dollar index, which tracks the US unit against a basket of large bonds, fell 0.088%, with the euro rising 0.26% to $ 1.0708.

US bond yields fell. The 10-year yield fell to its lowest level since April and last to 2.7505%.

Crude traded up 3.35% at $ 114.03 a barrel and Brent was up 2.59% at $ 116.98 a barrel.

Gold prices fell on Thursday as the Fed’s minutes reduced the metal’s impact as a safe haven.

Gold spot fell 0.2% to $ 1,848.99 an ounce as of 10:04 a.m. EDT (1404 GMT). US futures for gold also fell 0.28% to $ 1,841.10.

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Report by Elizabeth Dilts Marshall, Danilo Masoni and Andrew Galbraith. additional report by Vidya Ranganathan; edited by Emelia Sithole-Matarise and Jonathan Oatis

Our role models: The Thomson Reuters Trust Principles.

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