World stocks miss out on record highs in part due to a commodities rally
New York — US stocks were mixed on Tuesday, with traders unimpressed by some bank earnings reports, while the US treasury yield curve flattened and the dollar rose to a one-week high on increased inflation expectations. World stocks’ gains petered out near record-high levels, in part because of a rally in commodities that helped underpin one of the most durable bull runs in recent history. While Goldman Sachs and rival Morgan Stanley topped analyst expectations with their third-quarter earnings, shares of Goldman fell because earnings were fuelled by a volatile unit which has sharp revenue swings, analysts said. European shares were flat, underpinned by solid earnings from food group Danone and education specialist Pearson, and talk of a break-up of investment bank Credit Suisse. MSCI’s gauge of stocks across the globe shed 0.2%. Meanwhile, the yield spread between US five-year and 30-year treasuries fell to its lowest since mid-November 2007, and two-year yields rose to their highe...
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