Global equities rise on strong US data

Global equities rose on Tuesday as stronger-than-expected economic data from the United States lifted investor sentiment, while Treasury yields climbed and the Japanese yen strengthened following warnings from Tokyo on currency intervention, Reuters reported.

Data showed that the US economy grew at an annualised rate of 4.3 per cent in the third quarter, surpassing analysts’ expectations of 3.3 per cent, driven by robust consumer spending. The figures reinforced expectations that the Federal Reserve will pause rate cuts at its January meeting.

On Wall Street, the Dow Jones Industrial Average gained 44.14 points to close at 48,406.82, the S&P 500 added 5.95 points to 6,884.37, and the Nasdaq Composite rose 7.37 points to 23,435.22. MSCI’s global stock gauge increased by 0.23 per cent to 1,017.80.

European stocks also benefited, with the pan-European STOXX 600 briefly hitting a record high, supported by gains in the healthcare sector.

Shares of Danish pharmaceutical giant Novo Nordisk surged after the US Food and Drug Administration approved its weight-loss pill, giving the company a competitive edge in the obesity treatment market.

In currency markets, the Japanese yen strengthened by 0.55 per cent to 156.21 per US dollar, as investors weighed the possibility of imminent intervention by Japanese authorities. The euro rose 0.12 per cent to 1.1775 against the dollar, while the dollar index fell 0.19 per cent to 98.05.

Meanwhile, the yield on 10-year US Treasury notes increased by 2.71 basis points to 4.198 per cent, reflecting heightened expectations of steady US interest rates in the near term.

Reuters reported that investors globally reacted to the US economic strength with renewed confidence, driving market gains across equities, bonds, and commodities, with silver reaching a record above $70 per ounce and gold also hitting new highs.