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GLOBAL MARKETS-Shares rise as cyclical stocks provide support; yields climb

Published 20/02/2021, 03:42 am
© Reuters.
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* Wall Street supported by rise in cyclical stocks

* Longer-term yields climb, 30-year TIPS yield goes positive

* Gold hits a seven-month low, oil prices slip

* Bitcoin its $1 trillion market cap (Updates with midday U.S. markets activity; changes byline, dateline, previous LONDON)

By Saqib Iqbal Ahmed

NEW YORK, Feb 19 (Reuters) - A gauge of global equity markets snapped a 3-day losing streak to edge higher on Friday, as the recent selling pressure on high-flying big technology-related stocks eased even as investors showed a preference for economically sensitive cyclical sectors.

Oil prices fell from recent highs as Texas energy companies began preparations to restart oil and gas fields shuttered by freezing weather, while the U.S. Treasury yields extended their recent rise.

The MSCI's global stock index .MIWD00000PUS was up 0.47% at 681.88, after losing ground for three consecutive sessions.

On Wall Street, stocks steadied as cyclical sectors edged higher while tech names made modest advances after concerns about elevated valuations led to some selling in recent sessions.

"What we saw (this week) represents a market that is tired and may not do very much. So we are headed for some sort of a pullback, but I don't think we're there just yet," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"Investors are not really pulling out of the market, but they are becoming more cautious. It already has factored in another good positive earnings season."

The Dow Jones Industrial Average .DJI rose 119.97 points, or 0.38%, to 31,613.31, the S&P 500 .SPX gained 12.93 points, or 0.33%, to 3,926.9 and the Nasdaq Composite .IXIC added 92.58 points, or 0.67%, to 13,957.93.

The S&P 500 technology .SPLRCT and communication services .SPLRCL sectors, housing high-value growth stocks, were among the smallest gainers in early trading, while financials .SPSY , industrials .SPLRCI , energy .SPNY and materials .SPLRCM rose more than 1%.

European shares edged higher on Friday as an upbeat earnings report from Hermes HRMS.PA boosted confidence in a broader economic recovery. The pan-European STOXX 600 index .STOXX was 0.64% higher.

U.S. Treasury yields on the longer end of the curve rose to new one-year highs on Friday as improved risk appetite boosted Wall Street, while the yield on 30-year inflation-protected securities (TIPS) turned positive for the first time since June. bond yields have pushed higher globally, led by the so-called reflation trade, where investors wager on a pick-up in growth and inflation. Growing momentum for coronavirus vaccine programs and hopes of massive fiscal spending under U.S. President Joe Biden have spurred reflation trades.

The benchmark 10-year yield US10YT=RR was last up 5.1 basis points at 1.338%, its highest level since Feb. 26, 2020.

Oil prices retreated from recent highs for a second day on Friday as Texas energy companies began preparations to restart oil and gas fields shuttered by freezing weather.

Unusually cold weather in Texas and the Plains states curtailed up to 4 million barrels per day (bpd) of crude oil production and 21 billion cubic feet of natural gas, analysts estimated.

Brent crude LCOc1 futures were down 28 cents, or 0.44%, at $63.65 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 66 cents, or 1.09%, to $59.86.

Copper jumped to its highest in more than nine years on Friday and towards a third straight weekly gain as tight supplies and bullish sentiment towards base metals continued after the Chinese New Year. gold XAU= was down 0.58% at $1,785.71 an ounce.

The dollar lost ground on Friday, extending Thursday's decline as improved risk appetite sapped demand for the safe-haven currency and drew buyers to riskier, higher-yielding currencies. The dollar index =USD was off 0.295%. hit yet another record high on Friday, hitting a market capitalization of $1 trillion, blithely shrugging off analyst warnings that it is an "economic side show" and a poor hedge against a fall in stock prices. Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country World Index Market Cap

http://tmsnrt.rs/2EmTD6j

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