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GLOBAL MARKETS-Stocks rally to pare weekly loss; oil falls further

Published 2020-10-29, 04:53 p/m
© Reuters.
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* Euro falls as ECB flags easing in December

* Oil falls again, dollar grinds higher

* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn (Updates to U.S. stock market close)

By Rodrigo Campos

NEW YORK, Oct 29 (Reuters) - Crude oil fell again on Thursday as lockdowns in Europe and rising cases elsewhere clouded the energy demand outlook, while stocks rose as Wall Street rallied.

France and Germany will fall back into coronavirus lockdowns next week, while cases are rising in 47 U.S. states with patients overwhelming hospitals in parts of the country. European Central Bank said it would increase its support for the bloc's economy amid the pandemic, weighing on the euro even as policy was left unchanged. U.S. gross domestic product soared to a widely predicted record bounce that helped trigger stock buying on Wall Street, enough to halt the rout on equities globally so far this week. S&P 500 rallied partly on bets for strong earnings from mega-caps, but was still down 4.5% for the week so far, as traders have shied away from risk on concern a new wave of COVID-19 infections will hinder the economic recovery.

The Dow Jones Industrial Average .DJI rose 139.16 points, or 0.52%, to 26,659.11, the S&P 500 .SPX gained 39.08 points, or 1.19%, to 3,310.11 and the Nasdaq Composite .IXIC added 180.73 points, or 1.64%, to 11,185.59.

The pan-European STOXX 600 index .STOXX lost 0.12% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.44%. The global index is down 4.2% so far this week, which would be its largest weekly loss since March.

Japan's Nikkei .N225 fell 0.4% and futures were pointing higher, while Chinese blue chips .CSI300 rose 0.7%.

"Asia is not really partaking in this second or third wave story because it's got its COVID largely under control," said Rob Carnell, chief economist in Asia at ING.

Taiwan, which boasts Asia's best-performing currency this year, marked its 200th straight day without a local coronavirus transmission on Thursday.

Emerging market stocks lost 0.06%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.28% lower. Japan's Nikkei futures NKc1 were up 1.00%.

Concerns hit commodities too, with oil again falling and down about 9% for the week so far. O/R

"As lockdowns begin to bite on demand concerns across Europe, the near-term outlook for crude starts to deteriorate," said Stephen Innes, chief global market strategist at Axi.

U.S. crude CLc1 recently fell 2.97% to $36.28 per barrel and Brent LCOc1 was at $37.77, down 3.45% on the day.

Uncertainty about Tuesday's U.S. election also kept traders on edge. Republican President Donald Trump and Democratic rival Joe Biden will rally supporters in the battleground of Florida, visiting the same city hours apart to offer their contrasting approaches to the resurgent coronavirus pandemic. ECB held off on new measures on Thursday but it hinted at action in December, which is likely to keep the euro under pressure. dollar index =USD rose 0.521%, with the euro EUR= down 0.61% to $1.1672.

The Japanese yen JPY= weakened 0.30% versus the greenback at 104.61 per dollar, while the British pound GBP= was last trading at $1.2926, down 0.42% on the day.

The Bank of Japan made no changes to monetary policy settings overnight, as expected, though it trimmed its growth forecasts to reflect sluggish services spending. Treasury yields rose, tracking U.S. stocks, despite little initial reaction to the strong GDP number. US/

The 10-year note US10YT=RR last fell 16/32 in price to yield 0.8331%, from 0.781% late on Wednesday.

Spot gold XAU= dropped 0.5% to $1,868.21 an ounce. Silver XAG= fell 0.47% to $23.30.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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 COVID-19 daily cases

https://tmsnrt.rs/37Vr7a3 World stocks suffering COVID relapse

https://tmsnrt.rs/3myZlUO

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