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Bulls Remain in Charge as Global Borrowing Costs Stay Low

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The global economy remains steady as global borrowing costs stay low and major central banks indicate that they are done with rate hikes. Wall Street is set to extend its eight-day winning streak, while European shares hit a three-week high. Oil prices have rebounded, but the dollar, euro, and yen have seen minimal movement. Government bonds are also moving slowly, with the head of the US Federal Reserve scheduled to speak later in the day. In Asia, Japan’s Nikkei saw gains thanks to strong earnings from Nintendo and Casio, while China’s property sector continues to struggle. Chinese inflation figures for October showed a decline, indicating weak demand. Wall Street futures for the S&P 500 are up after eight consecutive days of gains. The dollar has rebounded from last week’s sell-off, but there is uncertainty about whether a rate cut is on the horizon. Oil prices have increased slightly, and gold prices have dipped. Overall, the global markets remain cautious but optimistic.

Major central banks, including the US Federal Reserve, are signaling that they are finished with rate hikes, resulting in global borrowing costs remaining near their lowest levels in months. This has led to an optimistic outlook for Wall Street, as the S&P 500 looks to extend its eight-day winning streak. Meanwhile, European shares hit a three-week high, and oil prices have rebounded. However, the dollar, euro, and yen have seen little movement.

Government bonds are also moving slowly, with the head of the US Federal Reserve scheduled to speak later in the day. There is anticipation regarding the Fed’s next move, as there is uncertainty about whether a rate cut is on the horizon. A recent Reuters poll showed that there is disagreement among experts, with inflation still above its 2 percent target.

In Asia, Japan’s Nikkei saw gains thanks to solid earnings from Super Mario maker Nintendo and calculator and watch firm Casio. The oil sector also experienced broad-based gains. However, China’s property sector continues to struggle, with the main Hong Kong listed real estate index down 4 percent. Property giant Country Garden saw a nearly 10 percent plunge in its shares, further exacerbating the challenges faced by the sector. Chinese inflation figures for October also showed a decline, indicating fragile demand in the world’s second-largest economy.

Wall Street futures for the S&P 500 are up, following eight consecutive days of gains from the flagship index. This marks its best run in nearly two years. The dollar has rebounded from last week’s sell-off, instilling confidence that the Federal Reserve has ended raising rates. However, there is uncertainty about a potential rate cut in the future.

The markets are also closely watching US weekly jobless claims, which are seen as an indicator of the country’s labor market performance. Economists predict that claims will reach 219,000 after last week’s figure of 217,000.

In commodity markets, oil prices have increased by nearly 1 percent after sliding more than 2 percent the previous day. Concerns over waning demand in the US and China have contributed to fluctuations in oil prices. US crude is now approaching $76 a barrel, while Brent crude has risen just above $80. Safe-haven gold prices have slightly decreased, trading at $1948.93 per ounce. Last month, gold prices spiked by 10 percent following the outbreak of war between Israel and Hamas.

Overall, the global markets remain cautious but optimistic. Despite ongoing challenges in the Chinese property sector and fluctuating oil prices, the global economy appears to be stable. Investors are closely monitoring the actions of major central banks, as well as economic indicators such as inflation and jobless claims, to guide their decision-making in the coming months.

More detail via Malay Mail here… ( Image via Malay Mail )

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