Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL MARKETS-Manufacturing data lifts stocks; U.S. dollar remains weak

Published 2020-09-01, 11:13 a/m
© Reuters.
EUR/USD
-
US500
-
DJI
-
DX
-
LCO
-
CL
-
IXIC
-
US10YT=X
-
STOXX
-
MIWD00000PUS
-

* Stocks climb on manufacturing data

* Dollar hits lowest level since April 2018

* For Reuters Live Markets blog on European and UK stock markets, please click on: LIVE/

(Updates to open of U.S. markets, changes dateline; previous LONDON)

By Chuck Mikolajczak

NEW YORK, Sept 1 (Reuters) - A gauge of global stocks kicked off September on a higher note on Tuesday, as data in major economies showed manufacturing demand rebounding from coronavirus-induced lows, while the U.S. dollar remained weak.

In the United States, stocks added to gains after two measures of manufacturing activity indicated expansion, with the reading from the Institute for Supply Management (ISM) hitting a 19-month high. activity in China expanded at the fastest rate in nearly a decade in August, a private PMI survey showed on Tuesday, boosting market sentiment overnight and at the European market open. zone manufacturing activity also grew last month to stay on a path towards recovery, though factory managers remained wary about investing and hiring more workers. are great headlines and certainly bolstering confidence in a U.S. and European rebound," said Jack Ablin, chief investment officer at Cresset Capital Management in Chicago.

"I would call this great rebound news, but as long as we are relying on government support, both here and abroad, we have a long way to go."

The Dow Jones Industrial Average .DJI rose 50.45 points, or 0.18%, to 28,480.5, the S&P 500 .SPX gained 10.25 points, or 0.29%, to 3,510.56 and the Nasdaq Composite .IXIC added 105.92 points, or 0.9%, to 11,881.38.

The gains pushed the S&P 500 and Nasdaq to intraday records.

The rebound in manufacturing can be partly attributed to massive monetary and fiscal stimulus programs implemented across the globe to support economies battered by the coronavirus.

But not all data was rosy and European stocks reversed course and turned lower after Germany cut its GDP forecast for 2021 and a reading on inflation for the bloc turned negative for the first time in more than four years. pan-European STOXX 600 index .STOXX lost 0.34% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.32%.

The dollar remained weak against a basket of major currencies despite the optimistic data, falling to its lowest level since late April 2018 at 91.737. The greenback has dropped about 1% since Federal Reserve Chair Jerome Powell on Thursday said the U.S. central bank was shifting to average inflation targeting. dollar index =USD fell 0.154%, with the euro EUR= up 0.18% to $1.1957.

The euro climbed above $1.20 for the first time since May 2018.

Benchmark 10-year notes US10YT=RR last fell 4/32 in price to yield 0.7064%, from 0.693% late on Monday.

The weaker dollar helped lift oil prices, reversing overnight losses. crude CLc1 rose 1.57% to $43.28 per barrel and Brent LCOc1 was at $46.08, up 1.77% on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 2020 Global asset performance

https://tmsnrt.rs/3iA4Cd2 Dollar's dive in 2020 Dollar's dive in 2020

https://tmsnrt.rs/2QISGtt

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

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.