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Despite the multiple rate hikes totaling 500 basis points over the last eighteen months, the U.S. economy is still expanding at 2%, suggesting that rates are not restrictive enough.

The Federal Reserve is attempting to strike a delicate balance between moderate economic and job market growth and keeping inflation under control.

The yield on the 10-year Treasury drifted lower from the 2007 high reached in September above 5% and declined after three inflation reports showed inflation is cooling but still above the Fed's target rate of 2%.

In Wednesday's trading, the yield on 10-year Treasury bonds drifted just above 4.4%, and the yields edged slightly higher in Friday's trading.

Stock exchanges are scheduled to close at 1 p.m. ET after being closed Thursday for the Thanksgiving holiday.

U.S. Indexes and Yields

The S&P 500 index edged up 0.3% to 4,571.02, and the Nasdaq Composite increased 0.1% to 14,305.08.

For the week, the S&P 500 is up 0.9% and the Nasdaq Composite is up 1.0%.

The yield on 2-year Treasury notes increased to 4.94%, 10-year Treasury notes inched higher to 4.46%, and 30-year Treasury bonds edged up to 4.59%.

Crude oil decreased $0.33 to $76.77 a barrel, and natural gas prices fell 5 cents to $2.86 a thermal unit.

Gold increased $3.70 to $1,995.53 an ounce after the U.S. dollar eased and worries of oil-driven inflation receded following the decline in oil prices.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.66.

Europe Movers: Barclays, Luxury Stocks, Mining Stocks, Trakm8

Inga Muller
24 Nov, 2023
Frankfurt

European stocks extended their rally for the third week in a row, and the euro and bond yields edged higher after comments from Bundesbank president Joachim Nagel suggesting interest rates are likely to stay higher well into 2024.

The DAX index increased 0.1% to 16,006.53, the CAC-40 index rose 0.08% to 7,283.55, and the FTSE 100 index fell 0.2% to 7,471.34.

For the week, the DAX index increased 0.8%, the CAC-40 index rose 0.7%, and the FTSE 100 index declined 0.4%.

Luxury stocks in Paris were under pressure after one of the largest wealth managers in China said it was deeply insolvent because of loans to property developers.

The Zhongzhi Enterprise Group said its liabilities are between 420 billion yuan and 460 billion yuan, while its total tangible assets were estimated at 200 billion yuan, making the company insolvent.

Kering SA declined 0.8% to €402.80, Richemont dropped 1.7% to CHF 111.60, and LVMH fell 0.8% to €705.80.

Barclays PLC gained 0.7% to 141.30 pence, and a report suggested that the UK-based bank is looking to cut as many as 2,000 jobs as part of a plan to save as much as £1 billion over the next few years.

Trakm8 Holdings PLC dropped 5.2% to 14.70 pence after the telematics data technology company reported its half-year results.

Mining companies traded down after base and precious metal prices softened due to ongoing demand growth worries.

Anglo American decreased 1% to 2,207.77 pence, Glencore fell 1% to 445.0 pence, and Antofagasta dropped 0.7% to 1,414.50 pence.

Market Update

U.S. Indexes and Yields