US Dollar Hits Over Two-Month Low as Global Stocks Ascend

On Monday, the US dollar fell to its lowest level since the early days of September, sparked by market speculation that the US interest rates may have capped, while the stocks worldwide saw an uptick. This shift in the dollar's fortune comes at a pivotal time when investors are closely following the Federal Reserve's minutes and European manufacturing data, also giving attention to corporate results from companies like Nvidia.

Global Equities on the Rise

Investors across the globe witnessed an increase in equity values, with the MSCI World Equity Index climbing 0.72% by the late afternoon in Eastern Time. European stocks saw subtle growth, with the STOXX index edging up by 0.1%, buoyed by a surge in energy stocks. However, healthcare stocks found less favor as Bayer shares took a dip to a 14-year low.

Wall Street Celebrates Tech Gains

On Wall Street, tech stocks were in the spotlight with the Nasdaq taking the lead, thanks notably to a peak in Microsoft shares. The index rose by 1.09%, while the Dow Jones increased by 0.62% and the S&P 500 advanced by 0.76%. Meanwhile, the dollar index tumbled down to 103.26, arousing investor bets that rate cuts might be on the horizon in the coming year.

Japanese Markets Reach New Peaks

In Japan, the markets touched heights unseen since the 1990s, thanks to robust earnings reports and a surge in overseas demand. Despite a round of profit-taking, the Nikkei maintained strong monthly gains, and likewise, the Topix index trailblazed closely behind.

US Consumer Spending and the Holiday Season

Heading into the US Thanksgiving holiday, traders expect subdued activity, but the eyes will be on Black Friday sales to gauge consumer spending, a key driver of the US economy.

Prospects for US Rate Cuts

Fed minutes from their last meeting will shed some light on the central bank's stance on interest rates, which could potentially weaken the dollar further. Meanwhile, advances against inflation have bolstered stock prices in anticipation of an end to rate hikes.

European Economic Health in Focus

With European manufacturing surveys imminent, a signal of softening could foster more predictions on the European Central Bank introducing rate cuts sooner than later.

Commodities: Oil and Gold Market Movements

In commodities, oil prices jumped on speculation that OPEC+ might extend its production cuts, while gold futures saw a slight dip.

dollar, stocks, oil