The MSCI world equity index, which tracks shares in nearly 50 countries, was 0.26% higher after early paring losses
Global stocks inched up in choppy trading on Monday, while U.S. Treasury yields gained following France’s historic elections and ahead of a string of economic data this week that could provide clues on the probability of Fed interest rate cut.
The French far right took a smaller-than-expected lead in the first round of voting, indicating a hung parliament could result and hamper the party’s agenda. European stocks ended up 0.31%, while the euro added 0.13% following the vote.
Investors will be eyeing remarks from Fed Chair Jerome Powell on Tuesday, followed by minutes from the Federal Reserve’s latest policy meeting on Wednesday and U.S. non-farm payrolls data due on Friday. The Fed in June projected just one rate cut this year.
The French elections result was not as bad and sometimes positioning matters, according to Wasif Latif, president and CIO at Sarmaya Partners.
There is going to be a big week for payrolls even though they are shortened trading so liquidity might be a little bit low as we head into the weekend, he said.
The MSCI world equity index, which tracks shares in nearly 50 countries, was 0.26% higher after early paring losses. In Asia, the MSCI’s broadest index of Asia-Pacific shares outside Japan closed flat.
Benchmark 10-year Treasury yields advanced to their highest since mid-June at the start of a holiday-shortened week that will likely be marked by low trading volumes. The yield on the note rose to 4.4692%.
On Wall Street, all three major indexes closed higher in a choppy session led by gains in technology, consumer discretionary, and financial stocks. Materials, industrials, and real estate equities were the biggest losers.
The Dow Jones Industrial Average (DJIA) gained 0.13% to 39,169.52, the S&P 500 added 0.27% to 5,475.09 and the Nasdaq Composite rose 0.83% to 17,879.30.
