Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

GLOBAL MARKETS-Stocks edge up as oil gets slight bounce

Published 2017-06-22, 04:14 p/m
Updated 2017-06-22, 04:20 p/m
© Reuters.  GLOBAL MARKETS-Stocks edge up as oil gets slight bounce

© Reuters. GLOBAL MARKETS-Stocks edge up as oil gets slight bounce

* European shares flat, Wall Street modestly higher

* Oil bounces off 10-month lows; crude glut still weighs

* Yield curve steepens slightly (Updates with close of U.S. markets)

By Chuck Mikolajczak

NEW YORK, June 22 (Reuters) - World stock markets edged higher on Thursday, buoyed by a modest rebound in oil prices after the commodity hit 10-month lows, while the U.S. yield curve managed to stall its recent flattening.

Brent edged up from November lows hit in the prior session, when U.S. crude hit its lowest intraday level since August 2016, but sentiment remained negative as a supply glut has persisted despite OPEC-led cuts to output. crude CLcv1 settled up 0.5 percent at $42.47 per barrel and Brent LCOcv1 settled up 0.9 percent at $45.22 on the day.

"I would not be surprised if it breaks down, considering momentum is still in that direction as well as supply concerns that didn't really change overnight," said Andres Garcia-Amaya, CEO at Zoe Financial in New York.

"It could carry lower and I wouldn't be surprised if it breaks $40, but to go down below where it was before there would have to be much stronger downward pressure than just supply."

With the gains, the energy sector in Europe .SXEP remained under pressure, down 0.3 percent, but managed to close well off earlier lows. The index is down nearly 2 percent on the week and is on track for its fifth straight weekly drop.

Those declines weighed on European shares and U.S. energy shares .SPNY gave up earlier gains to close 0.1 percent lower.

The Dow Jones Industrial Average .DJI fell 12.74 points, or 0.06 percent, to 21,397.29, the S&P 500 .SPX lost 1.11 points, or 0.05 percent, to 2,434.5 and the Nasdaq Composite .IXIC added 2.73 points, or 0.04 percent, to 6,236.69.

Healthcare .SPXHC was up 1.1 percent as the best performing group on Wall Street after Senate Republicans unveiled a draft bill to replace the Affordable Care Act. pan-European FTSEurofirst 300 index .FTEU3 rose 0.05 percent to snap a two-session skid and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.11 percent. peaking in late February, crude has dropped around 20 percent, with only brief rallies, completely erasing gains at the end of the year after the initial OPEC-led production cut.

Oil's decline has hurt energy stocks and curbed investor expectations for higher inflation that would enable major central banks to pursue tighter monetary policies.

Subdued inflation and concerns about the outlook for world growth when the U.S. Federal Reserve is raising interest rates have led to a flattening in bond yield curves.

The gap between yields on U.S. five-year notes and 30-year bonds US5US30=TWEB on Wednesday narrowed to 94.9 basis points, holding near its smallest since December 2007. The curve steepened slightly to 95.7 basis points on Thursday, suggesting the flattening of the yield curve this week was stalling. flattening yield curve is often viewed as a negative economic indicator. It shows concern about the future pace of growth and inflation, because buyers of long-dated debt would demand higher yields if they expected higher costs. 10-year notes US10YT=RR last rose 2/32 in price to yield 2.1494 percent, from 2.155 percent late on Wednesday. dollar index .DXY fell 0.02 percent, with the euro EUR= down 0.15 percent to $1.1149. Global assets in 2017

http://reut.rs/1WAiOSC Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Global bonds dashboard

http://tmsnrt.rs/2fPTds0

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.