US STOCKS PUSH HIGHER AS BONDS, DOLLAR DECLINE

 In Investor News

US equities climbed to fresh records as investors digested the latest views from Federal Reserve Chair Jerome Powell. Oil rose and treasuries slipped. The S&P 500 gained for a second day, touching a new intraday all-time high, led by Tech companies. In prepared remarks released earlier, the Fed chair said the US central bank was keeping a close eye on fallout from the deadly coronavirus outbreak in China.

According to Bloomberg News, equities seem to be enjoying momentum following another record close in the US on Monday. Sprint Corporation soared more than 70 per cent after T-Mobile US’ $26.5bn takeover won court approval. Ten-year treasury yields rose for the first time in four days, while the dollar dropped for the first time in five sessions.

Mega-cap stocks’ run is a far cry from outperformance of decades past. Investors have turned more bullish lately despite the epidemic, signalling some confidence that central banks could ease policy in the event growth slows down. They’re also focused on how companies address the virus’s impact.

“I think the market feels we’re through the worst peak on this coronavirus,” said Alec Young, managing director of Global Markets Research at FTSE Russell. “The market knows the Fed is on hold, not necessarily expecting to signal an ease at this point. The key is just that the Fed give the impression that they are there to take further accommodative action if needed. There’s a lot of uncertainty.”

The S&P 500 Index advanced 0.5 per cent in New York time. The Stoxx Europe 600 Index gained one per cent. The MSCI Asia Pacific Index increased 0.7 per cent. The MSCI Emerging Market Index advanced 1.3 per cent. The Bloomberg Dollar Spot Index dipped 0.2 per cent, the first retreat in a week. The British pound gained 0.4 per cent to $1.2961. The euro rose 0.1 per cent at $1.0923, the first advance in more than a week. The Japanese yen fell 0.1 per cent at 109.85 per dollar.

The yield on 10-year treasuries gained two basis points to 1.59 per cent. Germany’s 10-year yield advanced one basis point to -0.40 per cent. Britain’s 10-year yield gained one basis point to .571 per cent. West Texas Intermediate crude advanced 1.9 per cent to $50.51 a barrel. Gold fell 0.4 per cent to $1,572.80 an ounce. LME copper gained 0.1 per cent to $5,667 per metric ton.

https://punchng.com/us-stocks-push-higher-as-bonds-dollar-decline/

Recent Posts

Leave a Comment

Contact Us

Please send us a mail. We'll respond to you shortly.

Not readable? Change text. captcha txt

Start typing and press Enter to search