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Stocks rise, investors cool to impeachment talk

Published 2019-09-25, 04:31 p/m
© Reuters.  Stocks rise, investors cool to impeachment talk
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* Investors shrug off move to impeach Trump

* Trump comments on trade also lift equity markets

* Dollar recovers after dropping on impeachment inquiry

* Oil falls as U.S. inventories rise

By Herbert Lash

NEW YORK, Sept 25 (Reuters) - The dollar rose and stocks on Wall Street lifted a gauge of global equities on Wednesday on robust U.S. housing data and the notion a strong economy would overcome any investor skittishness over a possible impeachment of President Donald Trump.

European shares cut losses and U.S. stock indexes turned higher early in the session after Trump said a trade deal with China could happen sooner than expected. made the remarks to reporters a day after delivering a stinging rebuke to China's trade practices at the United Nations General Assembly, saying he would not accept a "bad deal."

Stocks in Europe were pressured by political uncertainty after Democrats in the U.S. House of Representatives moved to launch a formal impeachment inquiry of Trump. Wall Street shrugged off an impeachment investigation, with the benchmark S&P 500 posting its biggest daily gain in two weeks. Yields on U.S. Treasury long-dated debt rose after falling for seven straight sessions.

The White House released a summary of a telephone call between Trump and Ukraine's president, who said he was not pushed to investigate former Vice President Joe Biden, the front-runner for the 2020 Democratic presidential nomination. long as the economy remains firm, we don't think the drama out of Washington will impact the staying power of this bull market," said Ryan Detrick, senior market strategist at LPL Financial.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 0.01%. The pan-European STOXX 600 index .STOXX closed down 0.58% while in London, the FTSE 100 index .FTSE fell 0.02%.

Michael Antonelli, market strategist at Robert W. Baird in Milwaukee, said good economic data is fighting with political noise and good data is winning.

Sales of new U.S. single-family homes rebounded more than expected in August, the latest sign that lower mortgage rates were starting to boost the struggling housing market. impeachment is not a big issue until you get into a recession. It's a big deal politically, but it's not a big deal economically," said Stan Shipley, fixed income strategist, at Evercore ISI in New York.

The Dow Jones Industrial Average .DJI rose 162.94 points, or 0.61%, to 26,970.71. The S&P 500 .SPX gained 18.25 points, or 0.62%, to 2,984.85 and the Nasdaq Composite .IXIC added 83.76 points, or 1.05%, to 8,077.38.

The dollar benefited from a sharp pullback for the pound GBP= amid worries about nagging Brexit- and election-related risks. dollar index .DXY rose 0.71%, with the euro EUR= down 0.69% to $1.0942. The Japanese yen JPY= weakened 0.67% versus the greenback at 107.81 per dollar.

Most yields on 10-year euro zone bonds yields rose in late trade following Trump's comment U.S.-China trade.

Germany's 10-year Bund yield rose 2 bps at -0.58% DE10YT=RR .

Yields on U.S. 10-year Treasury notes US10YT=RR rose 27/32 in price to yield 1.7302%.

Oil prices fell for a second day as U.S. crude inventories unexpectedly surged 2.4 million barrels in the week to Sept. 20, according to the Energy Information Administration, instead of declining 249,000 barrels as analysts expected. EIA/S

Crude prices fell after Trump said on Tuesday he saw a path to peace with Iran, easing supply fears after the Sept. 14 attack on Saudi Arabia's oil facilities that halved its output. The kingdom and the United States have blamed Iran for the attack. crude futures LCOc1 settled down 71 cents at $62.39 a barrel. U.S. West Texas Intermediate crude CLc1 fell 80 cents to settle at $56.49 a barrel.

U.S. gold futures GCcv1 settled down 1.8% at $1,512.3 an ounce.

https://tmsnrt.rs/2NyAIcQ GBP volatility

https://tmsnrt.rs/2l2BqTR

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