Stocks shake off stimulus doubts; gold whipsawed

By Rodrigo Campos NEW YORK (Reuters) - Global stocks rose on Wednesday and were poised to end at their highest since February, as investors kept betting on more stimulus in the United States despite doubts, while gold was whipsawed and silver clawed back from a massive drop. The euro strengthened versus the greenback and the dollar index gave back some recent gains, barely changed mid-way this week following seven consecutive weekly declines

Reuters August 13, 2020 02:05:20 IST
Stocks shake off stimulus doubts; gold whipsawed

Stocks shake off stimulus doubts gold whipsawed

By Rodrigo Campos

NEW YORK (Reuters) - Global stocks rose on Wednesday and were poised to end at their highest since February, as investors kept betting on more stimulus in the United States despite doubts, while gold was whipsawed and silver clawed back from a massive drop.

The euro strengthened versus the greenback and the dollar index gave back some recent gains, barely changed mid-way this week following seven consecutive weekly declines.

Recently battered technology stocks reclaimed leadership on Wall Street and the benchmark S&P 500 was again brushing against record highs, even as U.S. Treasury Secretary Steven Mnuchin said the White House and top Democrats in Congress may not be able to reach a deal on coronavirus aid.

Both U.S. parties traded jabs on who was to blame for blocking relief to tens of millions of jobless Americans.

The Dow Jones Industrial Average <.DJI> rose 345.3 points, or 1.25%, to 28,032.21, the S&P 500 <.SPX> gained 53.89 points, or 1.62%, to 3,387.58 and the Nasdaq Composite <.IXIC> added 246.97 points, or 2.29%, to 11,029.79.

The S&P was within less than 10 points of its intraday record high of 3,393.52. The index slipped on Tuesday after seven straight days of gains.

"We're seeing buyers show up very quickly, any chance they get when the market declines. To me, that's a very bullish sign," said Adam Sarhan, chief executive of 50 Park Investments in New York.

The pan-European STOXX 600 index <.STOXX> rose 1.11% and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 1.33%.

Emerging market stocks rose 0.28%. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> closed 0.35% higher, while Japan's Nikkei futures rose 2.38%.

GOOD AS GOLD

The 10-year U.S. Treasury last fell 5/32 in price to yield 0.6731%, from 0.658% late on Tuesday, after relatively strong demand greeted a record offering on benchmark notes by the Treasury.

Oil prices climbed after government data showed U.S. oil inventories fell across the board, bolstering hopes for increased fuel demand in the world's biggest economy.

U.S. crude recently rose 2.62% to $42.70 per barrel and Brent was at $45.45, up 2.13% on the day.

The dollar index <=USD> fell 0.287%, with the euro up 0.4% to $1.1786.

The Japanese yen weakened 0.36% versus the greenback to 106.85 per dollar, while Sterling was last trading at $1.3027, down 0.16% on the day.

Gold swung from being down 2.5% to adding 0.8% to $1,925.63 an ounce, a day after it suffered its biggest daily fall in seven years. Silver rose as much as 6% after a 15% plunge, the largest in over a decade, on Tuesday.

Bullion has gained 28% so far this year, as investors buy it as a hedge against fears of currency debasement as central banks flood economies with free money in response to the global coronavirus crisis.

(Reporting by Rodrigo Campos; Additional reporting by Karen Brettell and Jessica Resnick-Ault in New York and Medha Singh and Ambar Warrick in Bengaluru; Editing by Bernadette Baum and David Gregorio)

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

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