🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

GLOBAL MARKETS-Stocks near six-month peak on China boost, oil gains

Published 2018-08-07, 03:34 p/m
GLOBAL MARKETS-Stocks near six-month peak on China boost, oil gains
EUR/USD
-
USD/JPY
-
US500
-
DJI
-
DX
-
LCO
-
CL
-
TSLA
-
IXIC
-
US10YT=X
-
FTEU3
-
MIWD00000PUS
-
DXY
-

* U.S. bond yields rise on supply, stock gains

* Turkish lira bounces after Monday drubbing, but still shaky

* Oil prices gain on Iran sanctions, supply signals

By Herbert Lash and Laila Kearney

NEW YORK, Aug 7 (Reuters) - Equity markets around the world neared a six-month high on Tuesday, buoyed by a rebound in Chinese stocks and an earnings-driven surge on Wall Street, while oil prices rose on concerns U.S. sanctions against Iran could cause supply shortages.

The equity gains prompted investors to sell safe-haven assets ahead of the first leg of this week's $78 billion quarterly U.S. government refunding, pushing Treasury yields higher. dollar weakened against the euro on a more stable Chinese yuan after the currency pair neared but failed to break through technical levels supporting the single currency.

U.S. corporate revenues are growing at a time the European and Japanese central banks continue to prop up their economies, which is suppressing shorter-term interest rates, said Michael Kelly, global head of multi-asset at PineBridge Investments.

"Profits are incredible, actually, and it's not just tax-cut sugar highs," Kelly said.

Of the 428 companies in the S&P 500 that have released second-quarter earnings so far, 79 percent reported above analyst expectations, a beat rate that if it holds will be the highest since Thomson Reuters started reporting the figure in 1994.

MSCI's all-country world index of stock markets in 47 countries .MIWD00000PUS gained 0.51 percent, while the pan-European FTSEurofirst 300 index .FTEU3 of leading regional shares rose 0.54 percent.

On Wall Street, the Dow Jones Industrial Average .DJI rose 148.45 points, or 0.58 percent, to 25,650.63. The S&P 500 .SPX gained 10.08 points, or 0.35 percent, to 2,860.48 and the Nasdaq Composite .IXIC added 23.78 points, or 0.3 percent, to 7,883.46.

Powered by gains in technology stocks and strong second-quarter U.S. earnings, the benchmark S&P 500 was about half a percentage point from its record peak in January. Inc TSLA.O shares jumped more than 7 percent after Chief Executive Elon Musk said on Twitter he is considering taking the electric car maker private at $420 per share. shares traded as high as $371.15 before easing a bit.

Such a deal, at about $72 billion, would take Tesla out of the glare of Wall Street but might limit its access to capital.

Chinese stocks rebounded overnight on hopes of fresh government spending, following a four-day selloff that had knocked them down about 6 percent. .SS

China's central bank on Friday raised the cost of shorting the yuan, which stabilized the currency and helped boost the euro against the dollar. dollar index .DXY fell 0.14 percent, with the euro EUR= up 0.32 percent to $1.159. The Japanese yen JPY= weakened 0.01 percent versus the greenback at 111.44 per dollar.

Turkey's lira recovered as much as 2 percent from Monday's losses of more than 5 percent after Washington moved to end duty-free access to U.S. markets for some Turkish exports.

Benchmark 10-year notes US10YT=RR fell 10/32 in price to yield 2.973 percent, up from 2.938 percent late on Monday.

Crude prices climbed as the United States revived sanctions against Iran. U.S. crude CLcv1 rose 16 cents to settle at $69.17 a barrel and Brent LCOcv1 gained 90 cents to settle at $74.65. first round of U.S. sanctions target Iran's dollar purchases, metals trading, coal, industrial software and its auto sector.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Turkey's foreign exchange reserves

https://reut.rs/2MuuEyM Trade-weighted sterling since Brexit vote

http://tmsnrt.rs/2hwV9Hv

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

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.