(Bloomberg) — U.S. stocks reached another milestone in a broad-based rebound as China took steps to bolster its economic recovery, while Treasuries retreated after an eight-day rally fueled by concerns about global growth amid the spread of Covid-19 variants.
The benchmark S&P 500 rose as much as 1% to a record intraday high, rebounding from the biggest drop in about three weeks on Thursday. The Dow Jones Industrial and Nasdaq Composite indexes also rallied. Financial shares led the gains with rising yields increasing the outlook for profits. The Stoxx Europe 600 index advanced, with all sectors in the green. The dollar weakened against a basket of major currencies and oil gained for a second day.
“The market is still on a positive trajectory and obviously there are going to be bumps along the way,” said Leslie Thompson, managing member of Spectrum Management Group.
JPMorgan Asset Management, BlackRock Inc. and Morgan Stanley Wealth Management — which together account for some $12 trillion in assets — are among money managers betting global growth is still on track, with second-quarter earnings season starting next week set to bolster confidence. China’s central bank cut the amount of cash most banks must hold in reserve, while the European Central Bank on Thursday indicated it will tolerate an inflation overshoot, implying an even longer period of loose policy.
“It shows how schizophrenic the market can be,” said Norm Conley, chief executive officer of JAG Capital Management. “. Only 60 days ago the narrative was that not only was the economy recovering, it was recovering too fast — here we are now.”
The 10-year Treasury yield remains on course for one of its biggest weekly slides since June 2020. In U.S. hours Thursday the 30-year yield broke below 1.90% for the first time since February.
Meanwhile, tension between the U.S. and China continues to bubble. Washington added Chinese entities to its economic blacklist over alleged human rights abuses and high-tech surveillance in Xinjiang.
Oil was still headed for a weekly loss after being whipsawed by the OPEC+ dispute. Bitcoin is trending higher after trading in a narrow range, emblematic of a reduced ardor for speculative investments like cryptocurrencies and meme stocks.
On the virus front, Pfizer Inc. plans to request U.S. emergency authorization in August for a third booster dose of its Covid-19 vaccine and said it’s confident it will be effective against the more-virulent delta variant. South Korea will raise curbs on social distancing to the highest level in Seoul for two weeks starting Monday.
For more market commentary, follow the MLIV blog.
These are some of the main moves in financial markets:
Stocks
The S&P 500 rose 0.9% as of 12:32 p.m. New York timeThe Nasdaq 100 rose 0.7%The Dow Jones Industrial Average rose 1.1%The MSCI World index rose 0.8%
Currencies
The Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.2% to $1.1868The British pound rose 0.4% to $1.3848The Japanese yen fell 0.4% to 110.19 per dollar
Bonds
The yield on 10-year Treasuries advanced five basis points to 1.35%Germany’s 10-year yield advanced one basis point to -0.29%Britain’s 10-year yield advanced four basis points to 0.66%
Commodities
West Texas Intermediate crude rose 1.9% to $74.33 a barrelGold futures rose 0.5% to $1,810.10 an ounce
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.
from WordPress https://ift.tt/2TXC3PP
via IFTTT
No comments:
Post a Comment