Shares up on lockdown easing hopes; oil drops further
By Rodrigo Campos NEW YORK (Reuters) - Global stock markets rose on Monday as investors cheered news that more countries and U.S. states were looking to ease lockdowns and the Bank of Japan expanded its stimulus program, while the price of oil continued to crumble as storage runs out. U.S
By Rodrigo Campos
NEW YORK (Reuters) - Global stock markets rose on Monday as investors cheered news that more countries and U.S. states were looking to ease lockdowns and the Bank of Japan expanded its stimulus program, while the price of oil continued to crumble as storage runs out.
U.S. energy stocks underperformed the wider market but were still up in New York despite a nearly 25% decline in U.S. crude prices.
The U.S. dollar fell as risk-prone traders cheered lockdown news even as health experts warned that not enough coronavirus testing was in place in the United States. From Italy to New Zealand, governments announced the easing of restrictions, while Britain said it was too early to relax them there.
The Bank of Japan kicked off a week of central bank meetings by pledging to buy unlimited amounts of government bonds, continuing a trend of historic stimulus announcements to offset the economic effects of the COVID-19 pandemic.
The U.S. Federal Reserve and the European Central Bank meet later in the week, with the ECB expected to increase the size of its bond buying program.
"There will certainly be a tsunami of negative news that will come crashing down on markets and investors. That is consensus. We have that assumption baked in," said Art Hogan, chief market strategist at National Securities in New York.
"What we don't know is what the world looks like on the other side of this, and how much of the potential economic damage will be mitigated by the historic policy response."
The Dow Jones Industrial Average rose 288.2 points, or 1.21%, to 24,063.47, the S&P 500 gained 38.57 points, or 1.36%, to 2,875.31 and the Nasdaq Composite added 103.99 points, or 1.2%, to 8,738.51.
The pan-European STOXX 600 index rose 1.77% and MSCI's gauge of stocks across the globe gained 1.64%.
After more than a month of lockdowns, some countries and U.S. states are gradually moving to ease restrictions that have in some cases proven effective, believing the peak of the virus infection rate has passed.
Although trillions of dollars in stimulus have helped the S&P 500 recover nearly 30% from its March lows, some analysts say more gains may be capped as the economic damage grows, unless there is progress on treatments for the disease.
"There are so many things that can go wrong in the next six months," said Marc Chaikin, founder of Chaikin Analytics in Philadelphia, adding that "history suggests that bear markets end with a whimper and not a bang."
Emerging market stocks rose 1.75%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.87% higher, while Japan's Nikkei rose 2.71%.
OIL DROPS FURTHER
Oil prices weakened sharply on continued concern about oversupply and a lack of storage space. The front-month contract was trading at lower-than-usual volumes as traders moved to later months in futures' contracts.
"The market is very concerned about a repeat of negative pricing as the Cushing storage and delivery hub saturates," Harry Tchilinguirian, global oil strategist at BNP Paribas in London, told the Reuters Global Oil Forum.
"The shift of open interest away from June will have negative consequences for the liquidity of the contract, potentially leading to greater volatility in its price," he said.
U.S. crude fell 26.21% to $12.50 per barrel and Brent was at $19.56, down 8.77% on the day.
The U.S. dollar dropped as the broader upbeat mood encouraged investors to move into other currencies.
The dollar index fell 0.09%, with the euro unchanged at $1.082.
The Japanese yen strengthened 0.25% versus the greenback at 107.31 per dollar, while Sterling was last trading at $1.2401, up 0.27% on the day.
Bucking the trend, the Brazilian real was on track to close at a record low against the greenback.
U.S. Treasury yields rose, with the benchmark 10-year note last down 17/32 in price to yield 0.6478%, from 0.596% late on Friday.
The 2-year note last fell 1/32 in price to yield 0.2243%, from 0.216%.
Spot gold dropped 0.9% to $1,711.26 an ounce.
The United States and European Union both release first-quarter economic growth numbers this week, while the influential U.S. ISM manufacturing survey is also due.
(Reporting by Rodrigo Campos; additional reporting by Tommy Wilkes and Noah Browning in London, Karen Pierog in Chicago, Karen Brettell in New York and C Nivedita in Bengaluru; Editing by Dan Grebler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
ATHENS (Reuters) - Greek police used teargas and water cannon to disperse people who had gathered in central Athens on Saturday to protest against mandatory COVID-19 vaccinations. More than 4,000 people rallied outside the Greek parliament for a third time this month to oppose mandatory inoculations for some workers, such as healthcare and nursing staff.
ISTANBUL (Reuters) - Two Turkish soldiers were killed and two were wounded in an attack on their armoured vehicle in northern Syria, and Turkish forces immediately launched retaliatory fire, Turkey's defence ministry said on Saturday. "Our punitive fire against terrorist positions is continuing," the statement on Twitter on said. It did not specify where the attack occurred, but media reports said it was in the al-Bab area.
By Marcelo Rochabrun SAO PAULO (Reuters) - Protesters took to the streets in several Brazilian cities on Saturday to demand the impeachment of far-right President Jair Bolsonaro, whose popularity has fallen in recent weeks amid corruption scandals against the backdrop of the pandemic. This week, news broke that Brazil's defense ministry told congressional leadership that next year's elections would not take place without amending the country's electronic voting system to include a paper trail of each vote. Bolsonaro has suggested several times without evidence that the current system is prone to fraud, allegations that Brazil's government has denied