Yahoo Finance FTSE and US stocks down after dovish signals from Fed
How major markets are performing on Monday
The FTSE 100 and European markets were broadly down on Monday, while gold prices rose briefly to an all-time high, as traders digest speeches by US Federal Reserve boss Jerome Powell from Friday.
The FTSE 100 (^FTSE) was 0.3% lower by the market close, while Germany's DAX (^GDAXI) was almost flat and the CAC (^FCHI) in Paris fell 0.2%.
Meanwhile, US stocks opened in the red with the S&P 500 (^GSPC) down 0.9%, the Dow (^DJI) declining 0.4% and the tech-heavy Nasdaq (^IXIC) trading 1.5% lower.
Gold (GC=F) bounded as much as 3.1% higher at the start of trade in Europe, hitting $2,135.39 a troy ounce, before falling back down. As of 4.20pm in the UK gold was trading 2.1% lower. The yen also pared previous gains. Traders typically buy gold and the yen as appetite for risk weakens.
Following optimistic comments from the Fed on its rate path, all eyes this week will be on US jobs numbers on Friday as well as manufacturing data.
Read more: UK house prices predicted to fall in 2024
According to Deutsche Bank analysts, last week saw the close of the best month for a global 60:40 portfolio of equities and bonds since the positive vaccine news in November 2020.
"Supporting last week’s rally was encouraging inflation data on both sides of the Atlantic, an upward revision of US GDP for Q3 that showed annualised growth of +5.2% (previously +4.9%), and some dovish Fedspeak," they added.
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