World stocks and bonds rise as market prices in more dovish Fed

Goldman Sachs Group Inc. recommends an outright long gold position into next year

Goldman Sachs Group Inc. recommends an outright long gold position into next year

In Europe, stock gains were driven by the tech, mining and autos sectors, which were worst hit by recent losses. The small-cap Russell 2000 index rose by 2.41 percent.

A rapprochement between the United States and China is seen as crucial, given that world growth and trade are already showing signs of an alarming slowdown. For the first hour of trade, US stocks are flat.

Investors will watch a meeting at which U.S. President Donald Trump and Chinese leader Xi Jinping are expected to discuss trade at the G20 summit on Saturday. While the drawdown in Fed expectations has weighed on the front end, parts of the curve have continued to flatten.

But minutes from the Fed's November 7-8 policy-setting meeting, released on Thursday, as well as remarks over the last two weeks, point to a reassessment of the Fed's long-standing promise of "further gradual rate increases" that would extend two years of almost uninterrupted quarterly tightening.

"Given the volatility you've seen recently, it's probably quite reasonable to expect a little bit of a bounce".

Bond prices fell. The yield on the 10-year Treasury note rose to 3.07 percent.

If the body does decide to stick with its initial annual forecast and raises rates to 2.25-2.5 percent, 2018 will mark a milestone in the recovery from the 2008 financial collapse.

Powell "gave the market, and presumably President Trump, exactly what he wanted, which was an admission that the previously proposed path of future rate hikes was probably too aggressive and opening to slowing the rate of hikes", said Oliver Pursche, vice chairman and chief market strategist at Bruderman Asset Management in NY.

The dollar, which has outperformed bonds and the benchmark S&P 500 stock index this year amid rising interest rates and safe-haven flows triggered by global trade tensions, was flat on Thursday.

Neither Boca nor River want to play at the Bernabeu
It was rescheduled for the following day on November 25, then scrapped by the regulatory body for South American soccer. River said the attack on the bus happened outside the area which was considered the club's responsibility.

Powell's comments ignited a rally on Wall Street, with the Dow Jones Industrial Average surging more than 200 points after his remarks were released.

Italy's borrowing costs slipped too, with 10-year yields dipping around 2 bps.

Italy's yield spread over Germany - effectively the premium investors require to hold Italian risk - tightened to 290 bps. The previous month was revised higher to 0.7%.

In commodities, oil prices rose after sources said Russian Federation had accepted the need for cuts in production together with OPEC.

Brent crude LCOc1 rose 51 cents to $59.27per barrel. It has slumped 21 percent this month, during which it fell to a 13-month trough of US$58.41.

U.S. stock markets jumped following the comments, as investors interpreted them to mean the central bank was close to the end of its tightening cycle.

The pan-European STOXX 600 index was down 0.01 percent and MSCI's gauge of stocks across the globe gained 0.08 percent. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

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