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GLOBAL MARKETS-Stocks rebound with earnings in focus; oil up on supply concern

Published 17/10/2018, 07:29 am
© Reuters. GLOBAL MARKETS-Stocks rebound with earnings in focus; oil up on supply concern
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* U.S. Treasury yields little changed after last week's run-up

* Sterling up after wages post steep gains (Updates to U.S. market close)

By Rodrigo Campos

NEW YORK, Oct 16 (Reuters) - Stocks across the world bounced back on Tuesday, supported by strong earnings results and expectations, while oil prices rose as evidence of higher U.S. production was overshadowed by concerns about supply from Iran and Saudi Arabia.

Despite the rally in stocks, U.S. Treasury yields were little changed.

European shares pulled up from Monday's 22-month lows .STOXX , partly on expectations that the reporting season will deliver double-digit earnings growth. A rebound in Italian assets helped battered equities find firmer ground.

On Wall Street, tech shares led the way a day after a decline in Apple AAPL.O weighed on the Nasdaq, while the healthcare sector rose after earnings reports from Johnson & Johnson (NYSE:JNJ) JNJ.N and UnitedHealth Group (NYSE:UNH) UNH.N . couple of inputs that caused a sell-off in the last two weeks, such as rising interest rates, higher oil prices and the dollar, have calmed down to rational levels," said Art Hogan, chief market strategist at B. Riley FBR in New York.

"The market may be able to positively respond to that as we work our way through the earnings season."

Willie Delwiche, investment strategist at Baird in Milwaukee, said Tuesday's gains were the result of sharp selling over the past weeks.

"The degree of the move is a function of the moves we have seen already this month more than anything else," he said.

The Dow Jones Industrial Average .DJI rose 547.87 points, or 2.17 percent, to 25,798.42, the S&P 500 .SPX gained 59.13 points, or 2.15 percent, to 2,809.92 and the Nasdaq Composite .IXIC added 214.75 points, or 2.89 percent, to 7,645.49.

The pan-European FTSEurofirst 300 index .FTEU3 rose 1.41 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.45 percent.

Emerging market stocks lost 0.86 percent. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.11 percent lower.

OIL WOBBLES

Crude futures rose in choppy trading as expectations of higher U.S. shale output and inventories were more than offset by worries over looming U.S. sanctions on Iran and growing tensions with top oil producer Saudi Arabia. Senator Lindsey Graham accused Saudi Crown Prince Mohammed bin Salman of ordering the murder of Saudi journalist Jamal Khashoggi and said the prince was jeopardizing relations with the United States. crude CLc1 rose 0.07 percent to $71.83 per barrel and Brent LCOc1 was last at $81.32, up 0.67 percent on the day.

Sterling rose against the dollar GBP= after data showed basic wages of workers in Britain rose at their fastest pace in nearly a decade. The British currency was last trading at $1.3187, up 0.28 percent on the day. a survey showed German investor morale darkened more than expected in October. euro EUR= fell 0.03 percent to $1.1573, while the Japanese yen weakened 0.47 percent versus the greenback at 112.30 per dollar. The dollar index .DXY rose 0.01 percent. waited for Washington's view on China in the U.S. Treasury's semiannual currency report due this week, after media reports last week that it has not labeled Beijing a currency manipulator. 10-year Treasury notes US10YT=RR last rose 1/32 in price to yield 3.1614 percent, versus 3.163 percent late on Monday.

The 30-year bond US30YT=RR last rose 6/32 in price to yield 3.3312 percent, from 3.341 percent late on Monday.

"Following the extraordinary volatility in both stocks and bonds, we are seeing a bit of a calming here as traders are looking for new ranges," said John Canavan, market strategist at Stone & McCarthy Research Associates in New York. scaled back bearish bets on longer-dated U.S. government debt this week, suggesting less selling pressure on Treasuries, according to a survey released by J.P. Morgan Securities on Tuesday. World stock markets

https://tmsnrt.rs/2OtmFHc GRAPHIC-Global assets in 2018

http://tmsnrt.rs/2jvdmXl GRAPHIC-World FX rates in 2018

http://tmsnrt.rs/2egbfVh GRAPHIC-Emerging markets in 2018

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

http://tmsnrt.rs/2EmTD6j Global and emerging markets stocks market cap losses

https://tmsnrt.rs/2ywXIzT

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