'Relief rally' pushes global equity markets higher; bonds flat
By David Randall NEW YORK (Reuters) - Global equity markets surged and the dollar fell from two-month highs on Monday as investors moved into beaten-down sectors such as banks and travel on the heels of last week's sharp sell-off. Asian shares gained, with Chinese shares boosted by data over the weekend showing China's industrial firms grew for the fourth consecutive month in August.
By David Randall
NEW YORK (Reuters) - Global equity markets surged and the dollar fell from two-month highs on Monday as investors moved into beaten-down sectors such as banks and travel on the heels of last week's sharp sell-off.
Asian shares gained, with Chinese shares boosted by data over the weekend showing China's industrial firms grew for the fourth consecutive month in August.
"We're seeing a bit of a relief rally," said Jonathan Bell, chief investment officer at Stanhope Capital. "Things got oversold perhaps a little bit in the short term."
"We saw quite a lot of exuberance in July and August, with prices particularly of tech stocks rising and that then has come off a little bit recently," he said.
MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 1.59% following broad gains in Asia and Europe.
The STOXX 600's banking stock index was up 5.6%, after hitting a fresh all-time low on Friday <.SX7P>.
In midday trading on Wall Street, the Dow Jones Industrial Average <.DJI> rose 532.75 points, or 1.96%, to 27,706.71, the S&P 500 <.SPX> gained 52.67 points, or 1.60%, to 3,351.13, and the Nasdaq Composite <.IXIC> added 135.49 points, or 1.24%, to 11,049.05.
Hotels, banks and airline stocks all gained more than the broad market, with Delta Air Lines Inc
The dollar index fell 0.241%, with the euro up 0.21% to $1.1655.
Investors remain cautious in light of rising new COVID-19 infections in Europe, which pose the risk of further restrictions on activity.
Benchmark 10-year notes last fell 1/32 in price to yield 0.661%, from 0.659% late on Friday.
"You're seeing a nice bounce for stocks, but it's more of an oversold bounce, and the bond market is still apprehensive about totally buying in on this equity move," given the uncertainty over additional U.S. fiscal stimulus and the Nov. 3 presidential election, said Ryan Detrick, chief market strategist at LPL Financial.
U.S. crude rose 0.87% to $40.60 per barrel and Brent was at $42.26, up 0.81% on the day.
(Reporting by David Randall; editing by Jonathan Oatis and Richard Chang)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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