U.S. stocks gain for second day; oil extends rally
U.S. stocks rose amid a report that President Donald Trump supports sending another round of checks to Americans and data that showed American manufacturing nearing expansion. Oil climbed and the dollar retreated.
The S&P 500 pushed to a two-week high with investors continuing to focus on signs the American economy is bouncing back from the shutdown. Investors remain on edge over tension with China after a wild overnight session that saw futures plunge after a White House adviser said the trade deal was over. They rebounded when after President Donald Trump contradicted the statement.
Treasurys were little changed, with the 10-year yielding around 0.71%, while the dollar dropped for a second day. Equities rose in Europe and in Asia. Gold continued its push toward the highest level since 2012 and oil topped $41 a barrel in New York.
Carmakers and banks led a broad advance in the Stoxx Europe 600 index after positive economic data in the euro area. Bayer AG rose more than 7% after a report that the company is close to resolving the litigation over its Roundup weedkiller. The euro strengthened and yields ticked higher on core European bonds.
Investors are betting that trillions of dollars in stimulus by central banks and governments around the globe will shield economies from a resurgence in virus breakouts. PMIs for June, due Tuesday, may show business activity in the world's largest economy continuing a rebound that started in May.
While euro-area PMI gauges earlier fueled a risk-on mood, they also underlined some of the pressures that a long and slow recovery would impose on companies struggling with weak demand.
Anthony Fauci, the U.S.'s top infectious-disease doctor, warned Tuesday that the coronavirus isn't taking a summer break, judging from its persistent spread in the U.S. Sun Belt. A German state locked down a municipality where 1,553 workers tested positive at a single meat factory.
These are the main moves in markets:
Stocks
- The S&P 500 gained 0.8% as of 10:17 a.m. EDT.
- The Nasdaq 100 added 0.5%.
- The Euro Stoxx 600 Index climbed 1.2%.
- MSCI Asia Pacific Index rose 0.9%.
Currencies
- The Bloomberg Dollar Spot Index dipped 0.4%.
- The Japanese yen fell 0.1% to 106.99 per dollar.
- The euro gained 0.5% to $1.1315.
Bonds
- The yield on 10-year Treasurys was little changed at 0.72% after dropping as much as three basis points earlier.
- Germany's 10-year yield climbed three basis points to -0.41%
Commodities
- West Texas Intermediate crude gained 2% to $41.54 a barrel.
- Gold gained 0.2% to $1,758 an ounce.
