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GLOBAL MARKETS-Stocks subdued, yen in focus, with inflation data on tap
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GLOBAL MARKETS-Stocks subdued, yen in focus, with inflation data on tap
Mar 28, 2024 2:02 PM

(Refreshes prices as of 2020 GMT)

By Lewis Krauskopf and Amanda Cooper

NEW YORK/LONDON, March 28 (Reuters) - A gauge of global

share markets was barely changed on Thursday as it was poised to

end the quarter with solid gains, while a strong dollar kept the

yen near its weakest in decades amid the threat of intervention

from Japanese authorities.

Wall Street's main stock indexes finished the session with

minimal changes as markets broadly were largely rangebound ahead

of Friday's much-anticipated U.S. personal consumption

expenditures (PCE) price index data, a closely watched inflation

measure. Few markets will be open to assess and respond to the

fresh data, however, given the long Easter weekend in many

countries.

"People are probably a little cautious about positioning

ahead of PCE," said Sameer Samana, senior global market

strategist at the Wells Fargo Investment Institute.

"For a lot of people today will be the last day of the week,

they are probably squaring positions for the quarter, for the

month."

Heightened focus was on the yen, which last weakened

0.05% against the greenback at 151.38 per dollar, having slid to

a 34-year low of 151.975 in the previous session.

Japan's three main monetary authorities held an emergency

meeting on Wednesday to discuss the weak yen, and suggested they

were ready to intervene in the market to stop what they

described as disorderly and speculative moves in the currency.

"Once dollar/yen touches 152, I think there will probably be

a sharp move upward, and that's when intervention could take

place," said Takeshi Ishida, a currency strategist at Resona

Holdings.

The dollar gained on the euro after a U.S. Federal Reserve

policymaker said he wasn't in a hurry to cut rates.

Fed Governor Christopher Waller said on Wednesday that

recent disappointing inflation data affirms the case for the

central bank to hold off on cutting its short-term interest rate

target, but he did not rule out trimming rates later in the

year.

The dollar index gained 0.12% at 104.55, with the

euro down 0.37% at $1.0786.

MSCI's gauge of stocks across the globe

fell 0.01 points, or basically no change, to 782.93. The index

was set to post a gain of over 7% for the first quarter.

On Wall Street, the Dow Jones Industrial Average rose

47.29 points, or 0.12%, to 39,807.37, the S&P 500 gained

5.86 points, or 0.11%, to 5,254.35 and the Nasdaq Composite

lost 20.06 points, or 0.12%, to 16,379.46.

Data on Thursday showed the U.S. economy grew faster than

previously estimated in the fourth quarter, lifted by strong

consumer spending and business investment in nonresidential

structures like factories. Gross domestic product increased at a

3.4% annualized rate last quarter, revised up from the

previously reported 3.2% pace.

U.S. Treasury yields were slightly firmer on the day ahead

of the inflation data.

The yield on benchmark U.S. 10-year notes rose

to 4.206%, from 4.196% late on Wednesday.

Oil prices rose, closing out the month higher on the

prospect of OPEC+ staying the course on production cuts, ongoing

attacks on Russia's energy infrastructure and a falling U.S. rig

count tightening crude supplies.

U.S. crude gained 2.04% to $83.01 a barrel and

Brent rose to $87.5 per barrel, up 1.64% on the day.

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