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GLOBAL MARKETS-S&P 500 hits record high on global risk appetite

Published 12/07/2016, 12:10 am
Updated 12/07/2016, 12:40 am
© Reuters.  GLOBAL MARKETS-S&P 500 hits record high on global risk appetite
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* U.S. S&P 500 hits record intraday high of 2,139.34

* European stocks rise on reduced political uncertainty

* Safe-haven yen falls versus dollar

* U.S. Treasury yields edge higher, 30-yr yield off record low (Updates to open of U.S. markets; changes byline, dateline, pvs LONDON)

By Sam Forgione

NEW YORK, July 11 (Reuters) - The U.S. benchmark S&P 500 stock index set a record intraday high on Monday in the wake of last week's strong monthly U.S. jobs report, while European shares rose on reduced political uncertainty and U.S. Treasury yields edged off record lows.

The S&P 500 .SPX touched a record intraday high of 2,139.34 points on Monday. Last Friday's jobs report showed the economy added the most jobs in eight months in June, boosting confidence in the U.S. economy.

The gains on Monday were broad-based, with seven of the 10 major S&P sectors higher. Financials .SPSY led the gainers with a 0.7 percent rise. JPMorgan (NYSE:JPM) JPM.N was up 1.4 percent and provided the biggest boost to the S&P. Street had closed sharply higher on Friday, with the S&P ending just 5 points below its previous all-time high of 2,134.72.

A combination of electoral success for Japanese Prime Minister Shinzo Abe, and the emergence of a sole candidate to succeed David Cameron as British prime minister, reduced political uncertainty and helped European shares gain. anticipation of stimulus measures also boosted stocks, while Japan's preparation for a new round of stimulus helped push Treasury yields higher.

"Reaching a new high may see money moving from the sidelines of safety trades, like Treasury bonds and gold, back into the equity markets," said Robert Pavlik, chief market strategist at Boston Private Wealth.

"The emphasis of the markets will be how fast and how long the S&P remains above the record today."

U.S. Treasury yields rose on Japanese Prime Minister Abe's order for new stimulus, which contributed to the boost in risky assets such as stocks and reduced demand for safe-haven U.S. bonds. Yields also rose as investors braced for $56 billion in new coupon-bearing supply this week. 30-year yields US30YT=RR were last at 2.111 percent after hitting a record low of 2.089 in overnight trading. Benchmark 10-year yields US10YT=RR were last at 1.393 percent, from a yield of 1.365 percent late Friday.

MSCI's all-country world equity index .MIWD00000PUS was last up 3.7 points, or 0.92 percent, at 404.69.

The Dow Jones industrial average .DJI was last up 81.25 points, or 0.45 percent, at 18,227.99. The S&P 500 .SPX was up 7.41 points, or 0.35 percent, at 2,137.31. The Nasdaq Composite .IXIC was up 30.39 points, or 0.61 percent, at 4,987.15.

The euro EUR= was last up 0.08 percent against the dollar, at $1.1061, while Europe's broad FTSEurofirst 300 index .FTEU3 was up 1.05 percent, at 1,309.65.

Brent crude LCOc1 was last up 8 cents, or up 0.17 percent, at $46.84 a barrel. U.S. crude CLc1 was last up 8 cents, or 0.18 percent, at $45.49 per barrel.

Prices rebounded after falling earlier on Monday over signs that U.S. shale drillers have adapted to lower prices and on renewed indications of economic weakness in Asia, where refiners are already trimming crude runs.

The dollar was last up 1.9 percent against the safe-haven yen at 102.41 yen JPY= . (Editing by Mark Heinrich and Nick Zieminski)

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