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GLOBAL MARKETS-Earnings lift stocks; euro loses ground after ECB

Published 27/04/2018, 01:11 am
© Reuters.  GLOBAL MARKETS-Earnings lift stocks; euro loses ground after ECB
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* Tech earnings power Wall Street higher

* U.S. 10-year yield back below 3 pct

* Euro weakens after ECB decision (Updates with U.S. markets, changes dateline; previous LONDON)

By Chuck Mikolajczak

NEW YORK, April 26 (Reuters) - A gauge of global equities advanced on Thursday, boosted by a slew of solid quarterly earnings in Europe and the United States, while the euro weakened in the wake of comments by European Central Bank chief Mario Draghi.

Technology stocks .SPLRCT jumped 2.28 percent, led by gains in Facebook FB.O , up 8.94 percent and Visa V.N , up 4.26 percent, after their quarterly results. reported a surprisingly strong 63 percent rise in profit and an increase in users, with no sign business was hurt by a scandal over the mishandling of personal data. Its shares were on track for their best day in over two years. supporting equities was a drop in the 10-year U.S. Treasury yield below the 3 percent mark, as a fall in domestic core capital good orders in March was offset by a decline in jobless benefit filings to their lowest level in over 48 years. slight pullback in yields is likely to give investors a chance to focus on corporate results," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

The Dow Jones Industrial Average .DJI rose 221.06 points, or 0.92 percent, to 24,304.89, the S&P 500 .SPX gained 23.07 points, or 0.87 percent, to 2,662.47 and the Nasdaq Composite .IXIC added 106.78 points, or 1.52 percent, to 7,110.51.

In Europe, Volkswagen VOWG_p.DE shares climbed 2.56 even though its first-quarter operating profit fell as investors were encouraged by its new chief executive, the carmaker's financial health and lower provisions for the diesel emissions scandal. pan-European FTSEurofirst 300 index .FTEU3 rose 0.85 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.62 percent.

MSCI's index was poised to snap a five-session losing streak, its longest since November.

The euro dropped to session lows after ECB President Mario Draghi hailed "solid" euro zone growth but kept rates unchanged, without a clear signal about ending the central bank's quantitative easing program. The dollar strengthened as short positions unwound on the U.S. economic data. euro fell to its lowest since mid-January at $1.204 after the European Central Bank announced its decision to keep monetary policy unchanged. The single currency had initially rebounded after Draghi played down concern over recent softness in data.

The dollar index .DXY rose 0.37 percent, with the euro EUR= down 0.36 percent to $1.2115.

A sharp sell-off in bonds over the last week has been pushing up global borrowing costs, putting additional focus on when the ECB will end its 2.55 trillion euro ($3.2 trillion), three-year stimulus program touching four-year highs, yields on 10-year U.S. Treasuries dipped below 3 percent as buyers emerged following a week-long sell-off spurred by concerns about rising inflation and growing borrowing by the U.S. government. rise in borrowing yields and commodity prices has caused several companies, such as Caterpillar (NYSE:CAT) CAT.N and 3M MMM.N , to caution this week about rising costs, raising flags for investors about the strength of future earnings.

Benchmark 10-year notes US10YT=RR last rose 8/32 in price to yield 2.9959 percent, from 3.024 percent late on Wednesday.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ US -led bond selloff

https://reut.rs/2KdVhHe ECB to kick off rate hikes in mid-2019?

https://reut.rs/2KbVFpP S&P 500 vs U.S. 10-Year Treasury Yield

https://reut.rs/2Kfu7Qs

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