(Updates prices, adds commentary, adds New York dateline)
Wall Street turns red, Euro STOXX 600 reverses gains
Oil prices rebound on China hopes, talk of output cuts
Dollar makes little progress in choppy session
Global asset performance http://tmsnrt.rs/2yaDPgn
World FX rates http://tmsnrt.rs/2egbfVh
NEW YORK/LONDON, Nov 29 (Reuters) - Wall Street lost
ground on Tuesday as investors awaited guidance on the Federal
Reserve's rate hiking path, while the dollar also slipped and
oil gained on hopes that protests in China could lead to looser
The Australian dollar bounced back on Tuesday as investors
hoped that China would ease COVID restrictions that have
increased fears about global growth, while the U.S. dollar also
dipped against the euro and yen. The optimism was derived from
indications from Chinese health officials that the country would
speed up COVID vaccinations for elderly people.
U.S. Treasury trading was choppy ahead of a slew of data due
later in the week and after a survey released on Tuesday showed
that U.S. consumer confidence eased further in November amid
persistent worries about the rising cost of living.
Richmond Federal Reserve Bank President Thomas Barkin became
the latest official to douse speculation the U.S. central bank
would reverse course on interest rates relatively quickly next
year in comments made late on Monday.
After similar messages from other Fed officials on Monday,
investors were warily awaiting an appearance by Fed Chair Jerome
Powell on Wednesday. Earlier this month he had dashed hopes of
policy easing when he spoke to reporters after a Fed meeting.
"Investors rare hedging against what could be a hawkish
reiteration of his press conference comment. That could cast
some cold water over recent market rallies," said Mark Luschini,
chief investment strategist at Janney Montgomery Scott in
Weakening consumer confidence may have marginally helped to
soften Treasury yields, weaken the dollar and boost stocks as
investors viewed it as "ammunition for the Fed to soften its
hawkish impulse," the strategist added.
The Dow Jones Industrial Average fell 162.05 points,
or 0.48%, to 33,687.41, the S&P 500 lost 22.79 points, or
0.57%, to 3,941.15 and the Nasdaq Composite dropped
95.50 points, or 0.86%, to 10,954.00.
The pan-European STOXX 600 index lost 0.15% and
MSCI's gauge of stocks across the globe shed
Emerging market stocks rose 2.41%. MSCI's broadest
index of Asia-Pacific shares outside Japan
closed 2.43% higher, while Japan's Nikkei lost 0.48%.
U.S. Treasury yields rose in choppy trading as investors
waited for upcoming data including third-quarter U.S. data on
gross domestic product (GDP), Chicago manufacturing numbers,
factory activity based on the Institute for Supply Management
and non-farm payrolls for November due out Friday.
Benchmark 10-year notes were last up 1.6 basis
points to 3.718%, from 3.702% late on Monday but the 2-year note
was last was down 1.6 basis points to yield 4.4546%,
"It's going to be a busy second half of the week with all
the data points we're expecting. But the main focus will be on
inflation and jobs," said Subadra Rajappa, head of U.S. rates
strategy, at Societe Generale in New York.
The dollar index rose 0.122%, with the euro
down 0.06% to $1.0331.
The Japanese yen strengthened 0.38% versus the greenback at
138.43 per dollar, while Sterling was last trading at
$1.1965, up 0.06% on the day.
The Aussie was last up 0.56% against the dollar
after earlier rising as much as 1.4%.
Oil prices climbed on hopes for a relaxation of China's
strict COVID-19 controls, which had fueled demand concerns.
U.S. crude recently rose 1.63% to $78.50 per barrel
and Brent was at $84.45, up 1.51% on the day.
Gold prices rose with help from the dollar's retreat and
hopes for less aggressive U.S. rate hikes going forward.
Spot gold added 0.6% to $1,750.48 an ounce while U.S.
gold futures gained 0.65% to $1,751.60 an ounce.
(Reporting by Sinéad Carew in New York, Tom Wilson in London
and Wayne Cole in Sydney; Editing by Kirsten Donovan, Susan
Fenton and Lisa Shumaker)