NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

GLOBAL MARKETS-Global stocks rise from trade fight wreckage, oil surges on U.S.-Iran pressure

Published 27/06/2018, 04:58 am
© Reuters.  GLOBAL MARKETS-Global stocks rise from trade fight wreckage, oil surges on U.S.-Iran pressure
EUR/USD
-
USD/JPY
-
US500
-
DJI
-
GE
-
DX
-
LCO
-
CL
-
IXIC
-
FTEU3
-
MIWD00000PUS
-
DXY
-

* Oil surges as U.S. pushes allies to halt imports of Iranian crude

* Wall St rebounds with help from tech stocks, GE

* European shares steady after China enters bear territory

* Metals knocked back in latest trade storms

* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh (Updates to mid-afternoon U.S. trading)

By Laila Kearney

NEW YORK, June 26 (Reuters) - Rising shares of U.S. technology companies and General Electric (NYSE:GE) Co helped global stock markets regain ground on Tuesday, a day after a mounting trade fight pummeled equities, while oil surged as Washington pushed its allies to halt Iranian crude imports.

GE GE.N jumped 8.6 percent, putting it on track for its biggest one-day gain in more than three years, after the company said it would spin off its healthcare business and divest its stake in oil-services company Baker Hughes BHGE.N .

Tech stocks rebounded from a sharp selloff on Monday, after U.S. government officials said plans were in the works to block firms with at least 25 percent Chinese ownership from buying U.S. companies with "industrially significant technology."

The Dow Jones Industrial Average .DJI rose 99.47 points, or 0.41 percent, to 24,352.27, the S&P 500 .SPX gained 11.72 points, or 0.43 percent, to 2,728.79 and the Nasdaq Composite .IXIC added 43.66 points, or 0.58 percent, to 7,575.67.

A basket of European stocks also got a reprieve. The pan-European FTSEurofirst 300 index .FTEU3 rose 0.09 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.18 percent, after Asia had extended a sell-off that has wiped $1.5 trillion off world stocks.

Despite the modest gains, investors remained wary.

"We're still in a tug-of-war between daily twists and turns of a potential trade war and the reality of a strong underlying U.S. economy," Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Co, said.

Escalating trade tensions between the United States and China, as well as Washington and Europe, had led two benchmark Wall Street indexes on Monday to suffer their biggest losses in more than two months and launched China into bear market territory, with its major stock indexes down 20 percent from January peaks.

After seeing a surge in buying on Monday, U.S. Treasury debt yields edged higher as concerned lingered that trade tensions could hurt economic growth, though safe-haven buying was capped on anticipation of more interest rate hikes from the Federal Reserve. tense atmosphere knocked down most industrial metal prices amid worries about the global fallout of the trade conflict between the U.S. and China, which could hamper economic growth and metals demand. and aluminum were at or near their lowest since April while zinc plunged to its weakest since August last year.

Gold hit its lowest in over six months as the selloff in global risk assets eased and it remained under pressure from the prospect that rising U.S. interest rates will further support the dollar. prices, meanwhile, soared after a U.S. government official said Washington was pushing its allies to halt imports of Iranian crude.

"We're going to isolate streams of Iranian funding and looking to highlight the totality of Iran's malign behavior across the region," the official told reporters. oil prices jumped over 2 percent and U.S. crude topped $70 a barrel for the first time in two months

Brent crude LCOc1 gained $1.30 to trade at $76.03 by 2:17 p.m. EDT (1817 GMT). U.S. light crude CLc1 rose $2.08 to $70.16.

News that Saudi Arabia plans to pump up to 11 million barrels of oil in July, the most in its history, was outweighed by the renewed Iranian supply concerns, traders said.

In currencies, the dollar index .DXY rose 0.42 percent, with the euro EUR= down 0.47 percent to $1.1647.

The Japanese yen weakened 0.33 percent versus the greenback at 110.13 per dollar JPY= , while sterling GBP= was last trading at $1.3208, down 0.50 percent.

The Turkish lira TRYTOM=D3 firmed against the dollar in volatile trade amid uncertainty over economic policy under a new government due to be formed following President Tayyip Erdogan's victory in Sunday's election. Trade war wipes 1.5 trillion June 26

https://reut.rs/2KlD8Hb World FX rates in 2018

http://tmsnrt.rs/2egbfVh

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.