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GLOBAL MARKETS-U.S., European stocks touch record highs as calm backs risk rally

Published 10/05/2017, 12:36 am
Updated 10/05/2017, 12:40 am
© Reuters.  GLOBAL MARKETS-U.S., European stocks touch record highs as calm backs risk rally
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* S&P, Nasdaq, German DAX hit record highs

* Wall Street's "fear gauge" at historic lows

* Bond yields on the rise, gold falls

* Oil buckles as concern grows over battle of OPEC vs shale

By Dion Rabouin

NEW YORK, May 9 (Reuters) - Wall Street opened higher on Tuesday, with the S&P 500 and Nasdaq touching all-time intraday peaks, as U.S. equities tracked European stocks and global bond yields.

Investor sentiment has been bolstered by historically low U.S. stock market volatility, last weekend's French presidential election result and solid corporate earnings.

The S&P 500 .SPX opened at an all-time record 2,401 points and the VIX index of implied volatility - known as the Wall Street "fear gauge" - fell to 9.56 points, the lowest since late 2006.

The Dow Jones Industrial Average .DJI rose 21.04 points, or 0.1 percent, to 21,033.32, the S&P 500 .SPX gained 3.16 points, or 0.13 percent, to 2,402.54 and the Nasdaq Composite .IXIC added 24.47 points, or 0.4 percent, to 6,127.13. index of leading 300 shares .FTEU3 rose to a near-two year high of 1,556.3 points, Germany's DAX .GDAXI hit a record high, and Britain's FTSE 100 .FTSE added 0.6 percent.

The 10-year U.S. Treasury yield US10YT=RR rose to its highest in five weeks before a $24 billion auction of a three-year government debt. German yields rose by 1-2 basis points EU10YT=RR and the 10-year British gilt yield rose around 4 basis points GB10YT=RR . calm sailing today for stock markets," ETX Capital senior markets analyst, Neil Wilson, said.

Victory for business-friendly centrist Emmanuel Macron in France and earnings were also supportive for equities, he said, adding: "So far, there is precious little to halt the rotation from bonds to stocks."

The positive sentiment and rising U.S. Treasury yields also boosted the dollar.

The dollar index .DXY rose 0.45 percent, with the euro EUR= down 0.28 percent to $1.0891.

In commodities, oil market sentiment swung between optimism over statements from major oil-producing countries that supply cuts could be extended into 2018 and lingering concerns over slowing demand and a rise in U.S. crude output. bounced from the four-month low touched on Monday after data showed a sharp drop on imports into China, the world's biggest consumer. London copper CMCU3 rose 0.5 percent to $5,515 a tonne on Tuesday, after falling to as low as $5,462.50 on Monday.

Gold prices touched a nearly eight-week low on Tuesday, indicating a shift in investor preference for riskier assets.

Spot gold XAU= dropped 0.7 percent to $1,217.38 an ounce. U.S. gold futures GCcv1 fell 0.79 percent to $1,217.40 an ounce. CMCU3 rose 0.78 percent to $5,529.00 a tonne.

Asian stocks did not perform as well, with China's seventh consecutive decline .CSI300 - the longest losing streak for four years - weighing on the region more broadly.

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