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GLOBAL MARKETS-Wall Street, long-term Treasury yields climb on upbeat data, trade reassurances

Published 24/06/2020, 01:05 am
© Reuters.
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* U.S., European PMI data beat consensus

* White House assures U.S.-China trade deal still intact

* Investors buoyed by China deal remaining live

* Stocks, oil, gold climb; dollar dips

* World FX rates in 2020 http://tmsnrt.rs/2egbfVh (Updates to U.S. market open)

By Stephen Culp

NEW YORK, June 23 (Reuters) - Wall Street followed European and Asian stocks higher on Tuesday and longer-term U.S. Treasury yields gained ground after trade deal reassurances and upbeat economic data from the United States and Europe brightened the prospect of a swift economic recovery.

The tech-heavy Nasdaq was on course to post its second-straight record closing high.

Economic data provided a welcome surprise to the upside with IHS Markit's "flash" purchasing managers' index (PMI) of June business activity in the U.S. separate report from the U.S. Commerce Department showed sales of new homes jumped by 16.6% in May, far better than the 2.9% consensus. Monday, President Donald Trump tweeted "The China Trade Deal is fully intact," calming markets after White House adviser Peter Navarro sparked confusion when he called the deal "over," due in part to lingering anger over the coronavirus outbreak. confirmation from the White House that the China trade deal remains in place gave a lot of confidence to the market," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. "The PMIs overseas were very strong and broad. There's a lot of pent up demand, there's a lot of cash and cash equivalents sloshing around looking for a home."

The Dow Jones Industrial Average .DJI rose 112.05 points, or 0.43%, to 26,137.01, the S&P 500 .SPX gained 17.94 points, or 0.58%, to 3,135.8 and the Nasdaq Composite .IXIC added 84.93 points, or 0.84%, to 10,141.41.

IHS Markit's PMI data for the Eurozone also blew past economist projections, climbing out of contraction territory and stoking hopes of a quick, v-shaped recovery. trade jitters also helped emerging markets advance. pan-European STOXX 600 index .STOXX rose 0.83% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.91%.

The upbeat economic data and the U.S.-China trade deal affirmation boosted longer-term U.S. Treasury yields, while the closely-watched spread between 2- and 10-year yields, considered a barometer of economic expectations, inched up to 53 basis points. 10-year notes US10YT=RR last fell 4/32 in price to yield 0.7151%, from 0.704% late on Tuesday.

The 30-year bond US30YT=RR last fell 20/32 in price to yield 1.489%, from 1.462% late on Tuesday.

The euro advanced against the dollar, jumping to a one-week high due to strong data and U.S.-China trade deal clarity. dollar index .DXY fell 0.64%, with the euro EUR= up 0.64% to $1.133.

The Japanese yen strengthened 0.66% versus the greenback at 106.19 per dollar, while Sterling GBP= was last trading at $1.2507, up 0.37% on the day.

Oil prices gained some ground on the prospect of reopening economies sparking an uptick in demand. crude CLcv1 rose 0.17% to $40.80 per barrel and Brent LCOcv1 was last at $43.45, up 0.86% on the day.

Gold prices inched higher as lingering concerns over a recent spike in COVID-19 cases helped keep demand for safe-haven assets elevated. gold XAU= added 0.6% to $1,765.43 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets

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

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

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

http://tmsnrt.rs/2EmTD6j Global markets have recovered strongly

https://tmsnrt.rs/2YqlVG9

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