Stocks rise to end bitter week, dollar jumps
By Rodrigo Campos NEW YORK (Reuters) - Stocks were set to fall more than 2% this week and the dollar was on track for its strongest week since April as concern over the economic effect of a second wave of virus-related lockdowns continued to weigh on investors' risk appetite. But tech stocks led the way higher on Wall Street on Friday, as they have of late on days governed by worries over the economic recovery.
By Rodrigo Campos
NEW YORK (Reuters) - Stocks were set to fall more than 2% this week and the dollar was on track for its strongest week since April as concern over the economic effect of a second wave of virus-related lockdowns continued to weigh on investors' risk appetite.
But tech stocks led the way higher on Wall Street on Friday, as they have of late on days governed by worries over the economic recovery. The gains offset losses elsewhere, and an index of major stock markets globally was up on the day.
Other than COVID-19 angst, the week was dominated by speculation over the likelihood of another stimulus package to support the American economy.
"There's evidence of a slowdown in the United States, which we think is temporary, but it would be reinforced if there is no additional fiscal package," said Sebastien Galy, senior macro strategist at Nordea Asset Management.
Bets on more stimulus increased after squabbling U.S. political parties talked about another super-sized stimulus package, but the rise in the dollar <=USD> and demand for safe-haven government bonds remained telling. [GVD/EUR]
On Wall Street, the Dow Jones Industrial Average <.DJI> rose 265.95 points, or 0.99%, to 27,081.39, the S&P 500 <.SPX> gained 41.35 points, or 1.27%, to 3,287.94 and the Nasdaq Composite <.IXIC> added 197.92 points, or 1.85%, to 10,870.19.
The S&P was on track for four consecutive weekly losses, the longest such streak in over a year.
The pan-European STOXX 600 index <.STOXX> lost 0.10% and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.84%. The global index was down over 2% for the week.
Emerging market stocks lost 0.03%. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> closed 0.38% higher, while Japan's Nikkei <.N225> rose 0.51% to end a three-day week.
Treasury yields remained little changed in a week where the 10-year traded in a 5-basis-point range.
"Overall the market remains fairly range-bound. There is some intraday, intra-week volatility that when you really look at it, we just don’t go anywhere," said Justin Lederer, an interest rate strategist at Cantor Fitzgerald.
But the relapse in sentiment has hit emerging market debt, especially countries with weak credit ratings. Argentina's newly restructured bonds have lost around 25%, making it the worst return to markets since Greece in 2012, while plenty of other countries have seen 10% slides. [EMRG/FRX]
China's government bonds gained acceptance into one of the world's most coveted bond benchmarks, the FTSE Russell WGBI. CGBs will be introduced late next year.
In the currency markets, the dollar index climbed for the fourth time this week and was set for its strongest weekly showing since April.
The dollar index <=USD> rose 0.314% on Friday, with the euro
The Japanese yen weakened 0.18% versus the greenback at 105.59 per dollar, while sterling
Demand for the greenback was boosted in part by Washington's failure to create a stimulus package and concerns ahead of the U.S. election, according to Juan Perez, senior currency trader and strategist at Tempus Inc.
"In times like that the chaos and havoc and blurriness of the future is so intense and so dense, that's when the dollar is going to rise once again," said Perez.
The Russian rouble sank to a near six-month low against the dollar. Geopolitical concerns further weighed on Russian assets with the threat of sanctions over the poisoning of Kremlin critic Alexei Navalny, in which Moscow denies wrongdoing. The crisis in neighboring Belarus also continued to linger.
The rouble lost 1.10% versus the U.S. dollar at 78.17.
The dollar's strength this week has also battered commodities, with gold set for its biggest weekly drop in six. On Friday, spot gold
Silver tumbled 14% this week so far, a drop not seen in over six months. The spot price
Oil prices fell and were set for a weekly decline mostly due to mounting worries about the impact on fuel demand of a widespread resurgence in coronavirus infections. [O/R]
(Reporting by Rodrigo Campos; additional reporting by Marc Jones and Noah Browning in London, Sinéad Carew and Chuck Mikolajczak in New York and Devik Jain in Bengaluru; Editing by Chris Reese and Steve Orlofsky)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.