Global Markets: Stocks rise, dollar falls on talk of new U.S. stimulus

By Alwyn Scott NEW YORK (Reuters) - Stocks rallied while the dollar fell on Thursday, and oil settled lower but rose after hours following a report that U.S.

Reuters November 20, 2020 04:05:18 IST
Global Markets: Stocks rise, dollar falls on talk of new U.S. stimulus

Global Markets Stocks rise dollar falls on talk of new US stimulus

By Alwyn Scott

NEW YORK (Reuters) - Stocks rallied while the dollar fell on Thursday, and oil settled lower but rose after hours following a report that U.S. lawmakers may restart negotiations on economic stimulus, which lifted gloom that had persisted through most of the global day.

Top Senate Democrat Chuck Schumer said Republican Majority Leader Mitch McConnell had agreed to resume COVID-19 relief talks as cases surge across the country, CNBC reported.

"It's all about the restart of stimulus negotiations," Edward Moya, senior market analyst at OANDA in New York, said of the quick shift by markets. "This should be a strong market catalyst and have follow through in Asia" on Friday, Moya added.

The Dow Jones Industrial Average <.DJI> rose 44.81 points, or 0.15%, to 29,483.23, the S&P 500 <.SPX> gained 14.08 points, or 0.39%, to 3,581.87 and the Nasdaq Composite <.IXIC> added 103.11 points, or 0.87%, to 11,904.71.

The Dow and S&P had been lower before the news, while tech shares had edged higher as the new lockdowns reinforced expectations of demand for online services.

Oil prices reversed losses and edged higher in after-market trade, after Brent settled down 0.3% at $44.20 per barrel with U.S. crude 0.2% lower at $41.70.

The dollar index <=USD> fell 0.235%, with the euro up 0.21% to $1.1877.

The benchmark 10-year Treasury notes rose 12/32 in price to yield 0.8423%, from 0.882% late on Wednesday.

POLITICAL PRESSURE

Politicians appeared pressured to act after small business owners warned in recent days their companies might not survive new lockdowns being prompted by the current wave of infections.

The report of talks, if confirmed, could prompt investors to price in prospects for a stimulus bill before President-Elect Joe Biden takes office, Moya said.

The news helped dispel the dark mood dominating markets earlier in the day.

Stocks had broadly declined and bond prices had risen on a weak reading for U.S. employment, with new COVID-19 restrictions seen possibly stifling economic recovery and tempering optimism about vaccines. The United States reported an unexpectedly large rise in jobless claims in the week ended Nov. 14 - 742,000 compared with 711,000 the prior week and forecasts of 707,000 among economists polled by Reuters.

Positive news about possible vaccines had helped push the MSCI World Index to a record high earlier in the week. But investors had pulled back after countries announced record infection rates and tougher lockdowns to curb the virus.

The MSCI benchmark for global equity markets <.MIWD00000PUS> fell 0.45% to 610.11. Europe's broad FTSEurofirst 300 index <.FTEU3> dropped 0.75% to 1,496.62.

(Reporting by Alwyn Scott; Editing by Alexandra Hudson, Marguerita Choy and David Gregorio)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

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.

also read

Facebook releases first data on hate speech prevalence on its platform
News &amp; Analysis

Facebook releases first data on hate speech prevalence on its platform

By Elizabeth Culliford (Reuters) - Facebook Inc for the first time on Thursday disclosed numbers on the prevalence of hate speech on its platform, saying that out of every 10,000 content views in the third quarter, 10 to 11 included hate speech. The world's largest social media company, under scrutiny over its policing of abuses, particularly around November's U.S.

Santa, barred from malls and chimneys, enters homes via interactive video
News &amp; Analysis

Santa, barred from malls and chimneys, enters homes via interactive video

(Reuters) - Santa cannot sit with kids in shopping malls this year, but they can still tell him their Christmas wishlist in a video chat at home.     Technology company Storyfile has come up with an artificial intelligence alternative to the holiday tradition: an interactive website where Father Christmas answers questions as if in person

Facebook estimates hate speech seen in 1 out of 1000 views on its platform
News &amp; Analysis

Facebook estimates hate speech seen in 1 out of 1000 views on its platform

By Elizabeth Culliford (Reuters) - Facebook Inc for the first time on Thursday disclosed numbers on the prevalence of hate speech on its platform, saying that out of every 10,000 content views in the third quarter, 10 to 11 included hate speech. The world's largest social media company, under scrutiny over its policing of abuses, particularly around November's U.S.