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Stocks, dollar dip while oil gains on China hopes

11/29/2022 | 12:00pm EST

(Updates prices, adds commentary, adds New York dateline)

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Wall Street turns red, Euro STOXX 600 reverses gains

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Oil prices rebound on China hopes, talk of output cuts

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Dollar makes little progress in choppy session

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Global asset performance http://tmsnrt.rs/2yaDPgn

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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 COVID-19 restrictions.

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 Philadelphia.

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 0.22%.

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%, from 4.471%.

"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)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / CANADIAN DOLLAR (AUD/CAD) -0.12% 0.9444 Delayed Quote.2.41%
AUSTRALIAN DOLLAR / EURO (AUD/EUR) -0.37% 0.65123 Delayed Quote.2.69%
AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY) -0.08% 92.179 Delayed Quote.3.24%
AUSTRALIAN DOLLAR / NEW ZEALAND DOLLAR (AUD/NZD) -0.35% 1.09096 Delayed Quote.1.94%
AUSTRALIAN DOLLAR / SWISS FRANC (AUD/CHF) -0.17% 0.65319 Delayed Quote.3.94%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.52% 0.70689 Delayed Quote.4.32%
BRENT OIL -2.50% 84.88 Delayed Quote.0.12%
BRITISH POUND / AUSTRALIAN DOLLAR (GBP/AUD) 0.21% 1.74837 Delayed Quote.-1.69%
BRITISH POUND / EURO (GBP/EUR) -0.16% 1.13868 Delayed Quote.0.96%
BRITISH POUND / US DOLLAR (GBP/USD) -0.30% 1.2361 Delayed Quote.2.50%
CANADIAN DOLLAR / AUSTRALIAN DOLLAR (CAD/AUD) 0.12% 1.058806 Delayed Quote.-2.35%
CANADIAN DOLLAR / EURO (CAD/EUR) -0.25% 0.689679 Delayed Quote.0.25%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.40% 0.748 Delayed Quote.1.72%
DOW JONES FXCM DOLLAR INDEX 0.20% 12704.47 Real-time Quote.-1.28%
DOW JONES INDUSTRIAL -0.36% 33857.88 Real-time Quote.2.51%
EURO / AUSTRALIAN DOLLAR (EUR/AUD) 0.36% 1.53536 Delayed Quote.-2.57%
EURO / US DOLLAR (EUR/USD) -0.13% 1.08542 Delayed Quote.1.57%
GOLD -0.29% 1922.9 Delayed Quote.5.72%
INDIAN RUPEE / AUSTRALIAN DOLLAR (INR/AUD) 0.49% 0.017366 Delayed Quote.-2.66%
INDIAN RUPEE / EURO (INR/EUR) 0.11% 0.011301 Delayed Quote.-0.06%
INDIAN RUPEE / US DOLLAR (INR/USD) 0.05% 0.012277 Delayed Quote.1.48%
NASDAQ COMPOSITE -1.58% 11438.16 Real-time Quote.11.04%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.15% 0.64794 Delayed Quote.2.27%
NIKKEI 225 0.19% 27433.4 Real-time Quote.4.94%
STOXX EUROPE 600 (EUR) -0.17% 454.4 Delayed Quote.7.13%
STOXX EUROPE 600(EUR)(TR) -0.17% 1050.62 Delayed Quote.7.20%
US DOLLAR / AUSTRALIAN DOLLAR (USD/AUD) 0.53% 1.414307 Delayed Quote.-4.08%
US DOLLAR / EURO (USD/EUR) 0.14% 0.921302 Delayed Quote.-1.51%
WTI -2.40% 78.493 Delayed Quote.-1.29%
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