GLOBAL MARKETS-World shares rise, U.S. Treasury yields fall ahead of Fed minutes

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Wall Street stocks close higher

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The benchmark 10-year yield is falling

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The retreat of the US dollar

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Oil prices rise by 1%

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Safe-haven gold benefits

(Prices updated as US markets close)

By Chibuike Oguh

NEW YORK, Nov 22 (Reuters) – Global stocks rose on Tuesday, while U.S. Treasury yields fell as investors awaited the release of minutes from the Federal Reserve meeting to provide information on U.S. interest rates and China’s COVID-19 restrictions weighed on sentiment. The Fed will release the minutes of its November policy meeting on Wednesday, offering insight into how officials are assessing economic conditions. In China, the authorities in Beijing closed parks and museums. Shanghai has tightened rules for people entering the city as the country grapples with a surge in COVID cases, raising concerns about its impact on the economy. “People are going to be talking word-by-word in these minutes to see if it’s going to move the Fed in the direction of a formal statement against what Powell said at the press conference, which is that they’re not going to take into account the cumulative effect when they’re considering when you end that tightening,” said Tom Plumb, portfolio manager at Plumb Balanced Fund manager in Madison, Wisconsin. The MSCI All-World stock index rose 1.18%, while European shares added 0.73%. The yield on the benchmark 10-year government bond fell to 3.7634%, while the yield on the 30-year note fell to 3.8325%. On Wall Street, all three major indexes closed higher, led by gains in technology, energy, healthcare, financials and consumer sentiment. The Dow Jones Industrial Average rose 1.18% to 34,098.1, the S&P 500 added 1.36% to 4,003.58 and the Nasdaq Composite added 1.36% to 11,174.41.

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“We’re seeing tech, consumer discretionary and energy pull back while consumers are locking in the gains in stocks, and those are signs that investors are positioning for the downside,” said Michael Ashley Shulman, chief investment officer at Running Point Capital in Los Angeles, California. . The US dollar retreated broadly, retreating from positions gained in the previous session, as investors shrugged off concerns over China’s COVID outbreak, fueling demand for riskier currencies. The dollar index fell by 0.566%, while the euro rose by 0.58% to 1.03 dollars. Crude oil prices rose about 1% after Saudi Arabia said OPEC+ was sticking to production cuts and could take further steps to balance the market. Brent crude rose 1% to $88.36 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 1.1% to $80.95.

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Safe gold prices

stabilized above the last session’s low

as declines in the dollar and benchmark US Treasury yields were offset by gains in stocks. Spot gold added 0.1% to $1,740.19 an ounce, while U.S. gold futures rose 0.23% to $1,738.30 an ounce.

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(Reporting by Chibuike Oguh in New York; Editing by David Gregorio and Marguerita Choya)

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