MSCI’s gauge of stocks across the globe dropped 1.28 points, or 0.16%, to 792.07
A global equities gauge dropped marginally on Tuesday while U.S. Treasury yields rose to multi-week highs as investors waited cautiously for inflation data due later in the week with hopes for clues on the outlook for U.S. interest rates.
U.S. Treasury yields gained ground after a weak auction. They had gained earlier after data showed U.S. consumer confidence unexpectedly improved in May amid optimism about the labour market after deteriorating for three successive months.
Additionally, U.S. house price growth slowed sharply in March, likely as rising mortgage rates weighed on demand.
Equity investors were most focused on waiting for price data that is not due out until Friday. The Fed’s preferred inflation barometer, the U.S. core PCE price index report, is expected to hold steady on a monthly basis for April.
It is a holiday-shortened week so volume is likely to be pretty low all week. That’s combined with the fact that markets are focused on one key data point due out Friday, according to Gene Goldman, CIO at Cetera Investment Management, referring to Monday’s U.S. Memorial Day holiday.
The market is anxiously sitting on the sidelines waiting to get confirmation that inflation is slowing towards the Fed’s target, Goldman said.
MSCI’s gauge of stocks across the globe dropped 1.28 points, or 0.16%, to 792.07.
Still, on Wall Street, the Nasdaq managed to surpass the 17,000 level, and close above it for the first time as AI company Nvidia reached a record high.
The DJIA dropped 216.73 points, or 0.55%, to 38,852.86, the S&P 500 added 1.32 points, or 0.02%, to 5,306.04 and the Nasdaq Composite added 99.09 points, or 0.59%, to 17,019.88.
Earlier Europe’s STOXX 600 index closed 0.6% lower.
