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GLOBAL MARKETS-Euro rises as ECB adds stimulus, stocks slip

Published 2020-12-10, 03:37 p/m
© Reuters.

* S&P 500 lower in late New York trading

* ECB expands and extends emergency COVID stimulus

* Brent futures climb above $50 a barrel (Updates with closing oil prices)

By Caroline Valetkevitch

NEW YORK, Dec 10 (Reuters) - The euro rose on Thursday as the European Central Bank rolled out yet more stimulus measures on Thursday to lift the currency bloc out of a double-dip recession, while world equity indexes slipped following an increase in weekly U.S. jobless claims.

Energy shares were sharply higher, however, with oil prices climbing nearly 3% and Brent rising above $50 a barrel for the first time since early March, fueled by hopes of a faster demand recovery.

The ECB expanded its debt purchase scheme and agreed to provide banks with even more ultra-cheap liquidity as long as they keep passing the cash onto companies. It said it is monitoring the euro's exchange rate with regard to its possible implications for the medium-term inflation outlook. weakened as investors became more cautious about the risk of a no-deal Brexit. euro was EUR= up 0.43% to $1.2133, while sterling GBP= was last trading at $1.3292, down 0.78% on the day.

On Wall Street, the S&P 500 edged lower as the jump in jobless claims pointed to a stalling labor market recovery, though focus remained on stimulus talks. three major stock indexes got a boost earlier after U.S. Treasury Secretary Steven Mnuchin said talks between Republican and Democratic senators on COVID-19 relief were making "a lot of progress" with more discussions expected in the day. is very fixated in anticipation that some type of deal can be made fairly soon," said Ryan Detrick, chief market strategist at LPL Financial in North Carolina.

The Dow Jones Industrial Average .DJI fell 87.06 points, or 0.29%, to 29,981.75, the S&P 500 .SPX lost 8.66 points, or 0.24%, to 3,664.16 and the Nasdaq Composite .IXIC added 36.78 points, or 0.3%, to 12,375.73.

The pan-European STOXX 600 index .STOXX lost 0.44% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.05%.

In the bond market, longer-dated Treasury yields were broadly lower.

Benchmark 10-year notes US10YT=RR last rose 9/32 in price to yield 0.9113%, from 0.941% late on Wednesday.

Brent crude LCOc1 rose $1.39, or 2.8%, to settle at $50.25 a barrel, gaining for a third day. U.S. West Texas Intermediate (WTI) crude CLc1 gained $1.26, or 2.8%, to settle at $46.78. gold prices XAU= were slightly lower. ($1 = 0.8255 euros)

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j Rebound of major world markets

https://tmsnrt.rs/370lXbY ECB to rein in euro?

https://tmsnrt.rs/2I7c2b3

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