Stocks rise despite mixed earnings while investors weigh easing of lockdowns
By Rodrigo Campos NEW YORK (Reuters) - Stock markets across the globe managed to rise on Tuesday, riding out sharp swings on Wall Street as mixed corporate earnings results and dramatic moves in oil prices delivered yet another dose of investor jitters. Conflicting measures and warnings on the coronavirus pandemic cast an uneasy tone
By Rodrigo Campos
NEW YORK (Reuters) - Stock markets across the globe managed to rise on Tuesday, riding out sharp swings on Wall Street as mixed corporate earnings results and dramatic moves in oil prices delivered yet another dose of investor jitters.
Conflicting measures and warnings on the coronavirus pandemic cast an uneasy tone.
Plans to ease major economies out of coronavirus lockdowns were continuing even as experts issued fresh warnings against reopening too soon. A predictive model showed the outbreak could take more than 74,000 U.S. lives by August, compared with an earlier forecast of 67,000, if the lockdown were to be lifted too early.
"There seems to be a conflict of opinion about the proper course of action," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey. "More insights back the belief that opening up early is not the best course of action right now, because if we do and if we get a relapse, then the next wave could even be worse."
Germany's coronavirus infection rate has edged up from earlier this month and people should stay at home as much as they can despite a lockdown relaxation last week, the head of an institute for infectious diseases said.
Reassuring UBS earnings lifted European banks nearly 5%, while Wall Street digested upbeat numbers from industrial conglomerate 3M Co
U.S. crude futures endured a day of wild trading, rising as much as 7% and falling 20%. BP's quarterly profit tumbled by two-thirds and its debt climbed to its highest on record. The energy major maintained its dividend despite warning of exceptional uncertainty, and its shares rose 2.6%.
Investors are gearing up for one of the busiest weeks for tech earnings, including reports from Microsoft
The Dow Jones Industrial Average <.DJI> rose 82.68 points, or 0.34%, to 24,216.46, the S&P 500 <.SPX> gained 5.47 points, or 0.19%, to 2,883.95, and the Nasdaq Composite <.IXIC> dropped 41.05 points, or 0.47%, to 8,689.12.
The pan-European STOXX 600 index <.STOXX> rose 1.68%, and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.61%.
Emerging market stocks rose 0.98%. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> closed 0.61% higher, while Japan's Nikkei <.N225> lost 0.06%.
Graphic: Stocks and oil, https://fingfx.thomsonreuters.com/gfx/mkt/nmopannerva/Pasted%20image%201588078292831.png
Oil prices were mixed with Brent hinging on sentiment about the easing of lockdowns, while U.S. crude traders remained cautious as storage capacities were filling up fast. [O/R]
"While wild price swings are set to last in the very near term, we see more upside than downside from prices around $20 per barrel. The oil price should recover in the longer term," said Norbert Rücker, analyst at Swiss bank Julius Baer.
Petrocurrencies were whiplashed, too. Canada's dollar
The dollar dropped against a basket of peers. The dollar index <=USD> fell 0.247%, with the euro
The Japanese yen strengthened 0.38% versus the greenback at 106.86 per dollar, while sterling
Sweden's central bank opted not to take its interest rates back into negative territory on Tuesday, sending its currency up 1.6% against the dollar.
Markets are looking for any forward guidance from the U.S. Federal Reserve, which is due to issue a policy statement at the close of its two-day meeting on Wednesday. The European Central Bank meets on Thursday.
Analysts said it was unlikely the Fed would make further major policy moves, given the scope and depth of its recent action to counter the economic damage caused by the novel coronavirus .
Benchmark 10-year notes
(Reporting by Rodrigo Campos in New York; additional reporting by Marc Jones in London, Laura Sanicola and Karen Brettell in New York, Karen Pierog in Chicago and C Nivedita in Bengaluru; Editing by Leslie Adler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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