Global Markets: Stocks hit record ahead of U.S.-China trade deal, dollar gains
By Herbert Lash NEW YORK (Reuters) - Bond yields edged higher while a gauge of global equity markets hit a record high on Monday, lifted by optimism over the planned signing this week of a U.S.-China trade deal and hopes the start of the U.S. corporate earnings season will not disappoint.
By Herbert Lash
NEW YORK (Reuters) - Bond yields edged higher while a gauge of global equity markets hit a record high on Monday, lifted by optimism over the planned signing this week of a U.S.-China trade deal and hopes the start of the U.S. corporate earnings season will not disappoint.
Gold prices fell almost 1% ahead of the signing at the White House on Wednesday of the Phase 1 trade deal and as a de-escalation in U.S.-Iran tensions in the Middle East reduced bullion's safe-haven appeal.
U.S. and euro zone government bond yields rose as the trade deal marks a major step in ending a dispute that has cut global growth and boosted demand for such safe-haven assets as bonds, gold and currencies like the Japanese yen and Swiss franc.
MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.45%, topping a record set Friday, while emerging market stocks rose 0.96%. The benchmark S&P 500 <.SPX> and tech-heavy Nasdaq composite <.IXIC> indexes also hit fresh highs on Wall Street.
The United States is planning to lift its designation of China as a currency manipulator, Bloomberg reported, citing people familiar with the matter, a move that added to the positive mood among investors.
Middle East tensions rose after the United States killed a top Iranian general on Jan. 2 in Baghdad, knocking global stocks off a rally spurred in late 2019 on hopes a trade deal would be signed. Markets have rebounded as both Tehran and Washington desisted from further escalation after Iran retaliated for the killing with an missile attack on U.S. troops in Iraq.
Investors are waiting for corporate results that start in earnest this week with large U.S. banks, including Citigroup Inc
"It's put up or shut up time," said Joe Saluzzi, said co-manager of trading at Themis Trading in Chatham, New Jersey. "We've priced in a big rally, we expect growth and now it's time to see it. If we have a good earnings season then it will be great."
The Dow Jones Industrial Average <.DJI> rose 53.41 points, or 0.19%, to 28,877.18, the S&P 500 <.SPX> gained 18.72 points, or 0.57%, to 3,284.07 and the Nasdaq Composite <.IXIC> added 80.48 points, or 0.88%, to 9,259.34.
The pan-European STOXX 600 index <.STOXX> lost 0.18%.
Other European automobile stocks <.SXAP> were also down, after China's top auto body reiterated predictions that sales were likely to shrink for the third consecutive year in 2020.
In currency markets, the offshore Chinese yuan
The dollar index <.DXY> fell 0.01%, with the euro
Oil prices fell about 1% as Middle East tensions eased and investors turned their focus to lackluster seasonal demand following a bearish U.S. report last week of a large increase in gasoline stocks.
Gold, considered a safe haven during political and economic turmoil, rose last week to an almost seven-year peak of $1,610.90 an ounce after a U.S. drone strike killed a top Iranian commander in Baghdad and Iran launched missiles against U.S. troops in Iraq in retaliation.
U.S. gold futures
(Reporting by Herbert Lash; Editing by Alison Williams and Richard Chang)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
(In Jan 4 story, corrects typographical error in CEO name in final paragraph) (Reuters) - Breaker, a popular podcast app, said on Monday it would be acquired by social media company Twitter Inc and shut down its app and website next week. Breaker said on its blog https://blog.breaker.audio/the-breaker-team-is-joining-twitter-f8c1721d66c6 that people can now transfer their subscriptions to other podcast listening apps like those offered by Apple Inc and Spotify. Financial terms of the deal were not disclosed.
By Bozorgmehr Sharafedin LONDON (Reuters) - Severe coronavirus restrictions around the world to contain surging infection rates weighed on fuel sales, weakening the prospect of energy demand recovery in the first half of 2021. Most of Europe is now under the strictest restrictions, according to the Oxford stringency index, which assesses indicators such as travel bans and the closure of schools and workplaces
By Shreyansi Singh (Reuters) - Gold accelerated its slide below the $1,900 mark on Friday, slumping around 3% and dragging down other precious metals as a jump in U.S. Treasury yields hammered bullion's safe-haven appeal.