Written by Chris Prentiss and Pete Schroeder
NEW YORK (Reuters) – Global stocks fell and the dollar rose on Tuesday as investors awaited fresh inflation data and more economic news later in the week.
Gold prices hit a two-week high, boosted by rising geopolitical tensions and expectations of a third interest rate cut by the US Federal Reserve next week.
Traders were awaiting the release of US inflation data on Wednesday and the European Central Bank's board meeting on Thursday.
The Dow Jones Industrial Average fell 154.10 points, or 0.35%, to 44,247.83, the S&P 500 fell 17.94 points, or 0.30%, to 6,034.91, and the Nasdaq Composite Index fell 49.45 points, or 0.25%, to 19,687.24. .
The pan-European STOXX 600 index fell 0.5% on Tuesday, ending a winning streak of eight sessions, with luxury goods stocks leading the decline on weak trade data from China.
Investors will be closely watching Wednesday's Consumer Price Index report for insight into the trajectory of U.S. inflation and subsequent Federal Reserve policy. A Reuters poll of economists found that 90% expect the Federal Reserve to cut interest rates by 25 basis points (bps) at its December 18 meeting. With an ECB rate cut now almost certain, investors will be watching for clues about the ECB's policy path.
Further boosting U.S. sentiment was a report showing small business confidence rose to its highest level in nearly three-and-a-half years in November.
Emerging market investors also focused on Brazilian President Luiz Inácio Lula da Silva, who underwent surgery in Sao Paulo after suffering a hemorrhage on the brain after falling at home in October.
MSCI's Worldwide Stock Index fell 4.28 points (0.49%) to 866.57.
In China, ahead of this week's target-setting Central Economic Work Conference, officials shifted their monetary policy stance from “cautious” to “moderately accommodative,” reflecting their response during past crises. was.
The Politburo meeting announcement adopted the strongest tone in decades, said Chen Shujing, head of China finance and real estate research at Jefferies.
Traders are also expecting rate cuts in Europe and Canada this week, with Switzerland tipped for a 50 basis point cut as authorities could put a brake on the franc's relentless rise against the euro. There is.
The yield on the benchmark 10-year U.S. Treasury note rose 3.1 basis points to 4.23% from 4.199% late Monday.
The dollar index against a basket of currencies including the yen and euro rose 0.25% to $106.42, while the euro fell 0.27% to $1.0523.
Spot gold rose 1.27% to $2,692.43 per ounce. U.S. gold futures rose 1.2% to settle at $2,718.40. [GOL/]
