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GLOBAL MARKETS-S&P 500 hits record high on global risk appetite

Published 2016-07-11, 10:10 a/m
© Reuters.  GLOBAL MARKETS-S&P 500 hits record high on global risk appetite
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* U.S. S&P 500 hits record intraday high of 2,139.34
* European stocks rise on reduced political uncertainty
* Safe-haven yen falls versus dollar
* U.S. Treasury yields edge higher, 30-yr yield off record
low

(Updates to open of U.S. markets; changes byline, dateline, pvs
LONDON)
By Sam Forgione
NEW YORK, July 11 (Reuters) - The U.S. benchmark S&P 500
stock index set a record intraday high on Monday in the wake of
last week's strong monthly U.S. jobs report, while European
shares rose on reduced political uncertainty and U.S. Treasury
yields edged off record lows.
The S&P 500 .SPX touched a record intraday high of
2,139.34 points on Monday. Last Friday's jobs report showed the
economy added the most jobs in eight months in June, boosting
confidence in the U.S. economy.
The gains on Monday were broad-based, with seven of the 10
major S&P sectors higher. Financials .SPSY led the gainers
with a 0.7 percent rise. JPMorgan (NYSE:JPM) JPM.N was up 1.4 percent and
provided the biggest boost to the S&P.
Wall Street had closed sharply higher on Friday, with the
S&P ending just 5 points below its previous all-time high of
2,134.72.
A combination of electoral success for Japanese Prime
Minister Shinzo Abe, and the emergence of a sole candidate to
succeed David Cameron as British prime minister, reduced
political uncertainty and helped European shares gain.

The anticipation of stimulus measures also boosted stocks,
while Japan's preparation for a new round of stimulus helped
push Treasury yields higher.
"Reaching a new high may see money moving from the sidelines
of safety trades, like Treasury bonds and gold, back into the
equity markets," said Robert Pavlik, chief market strategist at
Boston Private Wealth.
"The emphasis of the markets will be how fast and how long
the S&P remains above the record today."
U.S. Treasury yields rose on Japanese Prime Minister Abe's
order for new stimulus, which contributed to the boost in risky
assets such as stocks and reduced demand for safe-haven U.S.
bonds. Yields also rose as investors braced for $56 billion in
new coupon-bearing supply this week.
U.S. 30-year yields US30YT=RR were last at 2.111 percent
after hitting a record low of 2.089 in overnight trading.
Benchmark 10-year yields US10YT=RR were last at 1.393 percent,
from a yield of 1.365 percent late Friday.
MSCI's all-country world equity index .MIWD00000PUS was
last up 3.7 points, or 0.92 percent, at 404.69.
The Dow Jones industrial average .DJI was last up 81.25
points, or 0.45 percent, at 18,227.99. The S&P 500 .SPX was up
7.41 points, or 0.35 percent, at 2,137.31. The Nasdaq Composite
.IXIC was up 30.39 points, or 0.61 percent, at 4,987.15.
The euro EUR= was last up 0.08 percent against the dollar,
at $1.1061, while Europe's broad FTSEurofirst 300 index .FTEU3
was up 1.05 percent, at 1,309.65.
Brent crude LCOc1 was last up 8 cents, or up 0.17 percent,
at $46.84 a barrel. U.S. crude CLc1 was last up 8 cents, or
0.18 percent, at $45.49 per barrel.
Prices rebounded after falling earlier on Monday over signs
that U.S. shale drillers have adapted to lower prices and on
renewed indications of economic weakness in Asia, where refiners
are already trimming crude runs.
The dollar was last up 1.9 percent against the safe-haven
yen at 102.41 yen JPY= . by Mark Heinrich and Nick Zieminski)

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