Global markets indices saw mixed movements on Friday as investors awaited insights from the upcoming U.S. Federal Reserve meeting, with Treasury yields rising amid concerns about growing government debt supply. The MSCI world equity index, tracking shares in 49 nations, recorded a modest gain of 0.08%, while Wall Street indexes displayed a mixed performance.
The dollar index was marginally down in currencies, while the dollar rose against the yen to 148.18 but fell against the euro. Treasury yields rose, with the benchmark 10-year yield reaching 4.1412%. The December personal consumption expenditures (PCE) price index increased by 0.2%, matching the previous month’s gain.
Although pending U.S. home sales surged in December, indicating increased buyer activity due to stabilized mortgage rates, investors remained cautious ahead of the Fed’s meeting. The central bank is expected to acknowledge positive economic data but may push back on market expectations of aggressive rate hikes.
In Europe, equity indices closed higher, with the European Central Bank hinting at possible rate cuts by April. The eurozone’s stock index marked its biggest weekly percentage advance since October, fueled by ECB signals despite ECB chief Christine Lagarde’s cautious stance.
Oil prices settled higher on positive U.S. economic growth, Chinese stimulus hopes, and concerns over Middle East supply disruptions. U.S. crude settled at $78.01 per barrel, its highest level since November, while Brent crude finished at $83.55 per barrel, its highest closing level in over a month. In precious metals, spot gold prices experienced a slight decline as investor focus shifted to the Fed’s policy meeting next week.
Earlier in Asia, markets closed mixed, with MSCI’s index of Asia-Pacific shares excluding Japan recording a weekly rise after three consecutive weeks of losses. China’s CSI blue-chip index dipped on Friday but posted a weekly gain, supported by significant investor inflows into Chinese equity funds.
As investors adopt a wait-and-see approach ahead of the Fed meeting, global markets remain cautiously optimistic amidst economic data and central bank signals.
