Global Markets: Equities, Yields, and Economic Outlook

Global equities saw a rise as Wall Street indices fell, influenced by mixed U.S. economic data and Federal Reserve comments suggesting potential interest rate cuts. Scott Bessent's Senate testimony reinforced pro-business views amidst concerns of inflation and economic uncertainty ahead of the incoming administration.

The MSCI global equities gauge saw a modest rise on Thursday, while Wall Street indexes experienced a decline amidst falling U.S. Treasury yields. The market's reaction came against a backdrop of mixed economic data, coupled with statements from Federal Reserve officials hinting at potential interest rate cuts ahead.

Investors were weighing Federal Governor Christopher Waller's comments, suggesting the possibility of three or four interest rate reductions if economic conditions deteriorate. Meanwhile, Scott Bessent's Senate testimony emphasized a pro-business stance, prioritizing the extension of Trump's 2017 tax cuts and independence of the Federal Reserve.

Commodities saw varied responses with oil prices slipping and gold reaching new highs on declining Treasury yields. Market participants remain watchful amid broader economic uncertainties and geopolitical developments, evaluating the influence of U.S. fiscal policy and global economic trends intertwined with current market conditions.

(With inputs from agencies.)