Friday, July 03, 2020

Stocks rise for 3rd day on outlook for reopening

Jun 03. 2020
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By Syndication Washington Post, Bloomberg · Katherine Greifeld · BUSINESS, US-GLOBAL-MARKETS 

U.S. stocks rose alongside equities in Europe and Asia amid new bouts of stimulus and positive economic signals as coronavirus lockdowns ease. The dollar slumped for a fourth consecutive day.

Two shares rose on the S&P 500 Index for every one that fell, lifting the benchmark to its highest since March 4. Gunmakers extended rallies in the wake of President Donald Trump's promise to deploy large numbers of troops if cities and states don't act to contain violence from protests over police brutality.

Stocks are hovering near their highest in three months as businesses reopen around the world and manufacturing gauges show economies stabilizing following coronavirus shutdowns. That's despite a slew of risks still on the horizon, including tense U.S.-China relations that may jeopardize a hard-won trade deal. The sometimes violent demonstrations across U.S. cities over the killing by police of George Floyd, an unarmed black man, aren't yet seen as a major drag on the economy and corporate profits.

"Everyone who is assessing what they're seeing on the news every night is recognizing things getting worse, and yet the markets are focusing on things that they believe are getting better," said Brian Levitt, a global market strategist at Invesco. Coronavirus "cases have plateaued in aggregate and compressed in some of the hardest hit areas. Mobility is starting to pick up, reopenings are starting to pick up."

Stimulus hopes powered Europe's Stoxx 600 to a 12-week high as Chancellor Angela Merkel sought to thrash out a second aid package for Germany. Oil gained as investors eyed a potential extension of record production curbs by OPEC+. Treasurys edged lower, while the pound gained on positive news in trade negotiations between Britain and the EU.

Elsewhere, emerging-market stocks rallied alongside currencies. Australia's dollar rose to its highest level since January. In Asia, Tokyo equity benchmarks outperformed.

These are the main moves in markets:

Stocks

--The S&P 500 Index rose 0.8% at the close of trading in New York for its third straight gain.

--The Stoxx Europe 600 Index advanced 1.6%.

--The MSCI Asia Pacific Index increased 1%.

--The MSCI Emerging Market Index gained 1.7%.

Currencies

--The Bloomberg Dollar Spot Index decreased 0.3%.

--The euro increased 0.3% to $1.1169.

--The British pound gained 0.4% to $1.2546.

--The Japanese yen weakened 1% to 108.66 per dollar.

Bonds

--The yield on 10-year Treasurys rose two basis points to 0.68%.

--Germany's 10-year yield declined one basis point to -0.42%.

--Britain's 10-year yield fell one basis point to 0.22%.

Commodities

--West Texas Intermediate crude increased 4% to $36.84 a barrel.

--Gold fell 0.7% to $1,728.12 an ounce.

 

 

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