🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

GLOBAL MARKETS-U.S. stocks, crude advance as stimulus talks, Trump's improving health boost risk appetite

Published 06/10/2020, 06:00 am
Updated 06/10/2020, 06:06 am
© Reuters.
EUR/USD
-
GBP/USD
-
XAU/USD
-
US500
-
DJI
-
DX
-
GC
-
LCO
-
IXIC
-
US10YT=X
-
US30YT=X
-
STOXX
-
MIWD00000PUS
-
DXY
-

* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh (Updates to afternoon)

By Stephen Culp

NEW YORK, Oct 5 (Reuters) - Growing risk appetite helped push U.S. stocks and crude prices higher on Monday as renewed optimism surrounding stimulus negotiations and news of President Donald Trump's health progress helped calm investor anxiety.

U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued talks aimed at arriving at a bipartisan agreement on a new pandemic relief package. That revived hopes that a new round of stimulus could be in the offing more than two months after emergency unemployment benefits expired for millions of Americans. long as we hear negotiations are continuing Mnuchin and Pelosi trying to narrow their conditions, the market will think they are making progress and something will happen soon," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

While the severity of Trump's condition remained unclear, he took a brief ride in a presidential motorcade to wave to his supporters, as his doctors painted a rosy picture of the president's health and White House Chief of Staff Mark Meadows expressed optimism Trump would soon be discharged. a tweet, Trump announced he expects to be discharged from the hospital early on Monday evening.

"As chaotic as this election has been, a healthy incumbent means someone will be at the helm the next few weeks," Nolte added.

Democratic contender Joe Biden opened his widest lead in a month in the U.S. presidential race, according to a Reuters/Ipsos poll released on Sunday. Dow Jones Industrial Average .DJI rose 364.58 points, or 1.32%, to 28,047.39, the S&P 500 .SPX gained 46.69 points, or 1.39%, to 3,395.13 and the Nasdaq Composite .IXIC added 193.83 points, or 1.75%, to 11,268.84.

Positive health updates regarding Trump and a flurry of dealmaking activity helped European shares close at a two-week high. pan-European STOXX 600 index .STOXX rose 0.81% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.36%.

Crude prices surged on waning uncertainties, and were further supported by an escalating oil workers strike in Norway, where six offshore oil and gas fields were shut down. crude CLcv1 futures settled at $39.22 per barrel, a 5.86% gain. Brent crude advanced 5.14% to settle at $41.29 per barrel.

The safe-haven dollar dipped and riskier currencies outperformed on mounting stimulus optimism. dollar index .DXY fell 0.34%, with the euro EUR= up 0.49% to $1.1773.

The Japanese yen weakened 0.39% versus the greenback at 105.75 per dollar, while sterling GBP= was last trading at $1.2973, up 0.32% on the day.

Risk-on sentiment also pushed longer-term U.S. Treasury yields to five-year highs and steepened the yield curve. 10-year notes US10YT=RR last fell 19/32 in price to yield 0.7552%, from 0.694% late on Friday.

The 30-year bond US30YT=RR last fell 58/32 in price to yield 1.5568%, from 1.48% late on Friday.

Gold inched higher as the dollar slipped, despite gains in equities markets. gold XAU= added 0.8% to $1,913.78 an ounce.

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.