Speakers from Touchstone Exploration, Shanta Gold, Savannah Resources and Kavango Resources feature in our Natural Resources webinar on May 25th. Please register here.

Less Ads, More Data, More Tools Register for FREE

GLOBAL MARKETS-Stocks climb on recovery, stimulus hopes; dollar climbs

Wed, 2nd Sep 2020 16:18

* Wall Street climbs on defensive share gains

* ADP falls short of expectations

* Dollar edges away from two-year lows
(Updates to open of U.S. markets, changes dateline; previous
LONDON)

By Chuck Mikolajczak

NEW YORK, Sept 2 (Reuters) - A gauge of global stocks gained
to hit an intraday record on Wednesday as investors looked to
improving economic data and anticipation that Washington would
be able to provide more stimulus to support the recovery from
coronavirus lockdowns.

On Wall Street, each of the three major equity indexes moved
higher, but gains were led by defensive sectors such as
utilities as the high-flying tech sector
paused.

Earlier data from the ADP National Employment Report showed
private payrolls rose by 428,000 jobs in August, well short of
expectations as the government's aid to support workers and
employers runs out. While July's data was revised higher, the
report indicated a slowing in the labor market recovery.

A separate report showed factory orders rose more than
expected in July, pointing to continued improvement in the
manufacturing sector.

The mixed data may have fueled expectations Washington may
feel pressure to reach a deal on a new stimulus act, although on
Tuesday U.S. House of Representatives Speaker Nancy Pelosi said
"serious differences" remain between Democrats and the White
House after a phone call with Treasury Secretary Steven Mnuchin,
adding to the defensive tilt on Wall Street.

"If we think about typical headwinds we might be concerned
about in the ongoing market saga, it is not getting fiscal
policy out of gridlock, that might be part of it," said Art
Hogan, chief market strategist at National Securities in New
York.

"Nobody is going to argue technology hasn’t had a massive
run here, so to take a breather for a day or two is likely very
healthy," Hogan said.

The Dow Jones Industrial Average rose 237.91 points,
or 0.83%, to 28,883.57, the S&P 500 gained 24.2 points,
or 0.69%, to 3,550.85 and the Nasdaq Composite added
9.57 points, or 0.08%, to 11,949.24.

While tech stocks paused in the United States, they helped
put European stocks on track to snap four straight days
of losses. Tech shares jumped 2.06% after rising as much
as 2.8% to their highest in more than 19 years.

The pan-European STOXX 600 index rose 1.65% and
MSCI's gauge of stocks across the globe gained
0.42%. MSCI's index reached an intraday record for a sixth
straight day.

The dollar strengthened against a basket of major currencies
for a second straight day from lows of more than two years,
while the euro pulled back from the key $1.20 level reached in
the prior session.

The dollar index rose 0.554%, with the euro
down 0.6% at $1.1839.

Benchmark 10-year notes last rose 5/32 in price
to yield 0.6559%, down from 0.671% late on Tuesday.

In commodities, oil gave back gains following a brief move
higher on data showing U.S. crude and fuel stocks fell sharply
in the most recent week as Hurricane Laura shut output and
refining facilities.

U.S. crude recently fell 1.75% to $42.01 per barrel
and Brent was at $44.94, down 1.4% on the day.

(Reporting by Chuck Mikolajczak; editing by Jonathan Oatis)

More News

UK's Johnson announces urban renewal plans after promise to "level up"

LONDON, May 19 (Reuters) - British Prime Minister Boris Johnson on Wednesday announced a series of urban renewal projects worth 830 million pounds ($1.2 billion) in towns and cities away from London as part of his promise to "level up" the countr...

Today 00:01

GLOBAL MARKETS-Stocks fall with tech shares; dollar touches lowest since late February

* All three major stock indexes end lower* Dollar, oil lower* Eyes on Fed minutes (New throughout, updates to U.S. market close)By Caroline ValetkevitchNEW YORK, May 18 (Reuters) - Wall Street stocks fell on Tuesday, with technology shares turning ...

18 May 21 22:53

UPDATE 1-Spain approves Pfizer shots for under-60s who got AstraZeneca first dose -El Pais

(Updates with reported approval)MADRID, May 18 (Reuters) - Spain's public health commission has approved a proposal by the health ministry that Spaniards under 60 who have received a first dose of AstraZeneca's vaccine get a second shot of the cor...

18 May 21 21:46

IN BRIEF: Tiziana Life Sciences annual loss widens

IN BRIEF: Tiziana Life Sciences annual loss widens

18 May 21 21:38

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.