Breaking News
Investing Pro 0
Black Friday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Stocks jump as Treasury yields ease and oil prices sell off

Economy Sep 07, 2022 22:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. People walk past a screen displaying the Hang Seng stock index outside Hong Kong Exchanges, in Hong Kong, China July 19, 2022. REUTERS/Lam Yik/File Photo
 
CHNA
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
N1WS34
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Caroline Valetkevitch

NEW YORK (Reuters) - Global stocks rallied on Wednesday after recent losses as benchmark U.S. Treasury yields eased from three-month highs and oil prices fell below $90 a barrel.

The dollar surged to a 24-year peak against the yen and a 37-year high versus sterling, but the dollar index =USD was lower on the day.

Brent crude LCOc1 futures touched their lowest since early February, falling below levels seen prior to Russia's invasion of Ukraine. Data showing China's export growth slowed in August fueled demand worries. (Full Story)

Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, said given the oversold conditions of stocks, it did not take much to create a bounce.

Oil prices fell and the dollar index weakened, and "those are two good catalysts," she said.

Benchmark U.S. Treasury yields slipped after earlier hitting three-month highs, with the 10-year note yield US10YT=RR last at 3.28%, ahead of Federal Reserve Chair Jerome Powell's speech on Thursday. (Full Story)

Concerns that inflation will remain persistently high and keep driving interest rates higher had lifted yields in recent weeks.

Investors have been anxious for more news from central banks on the trajectory of global interest rates.

The European Central Bank is widely expected to raise interest rates sharply when it meets this week, while the U.S. central bank is expected to raise rates by another 75 basis points at its Sept. 20 to 21 meeting. (Full Story)

All major S&P 500 sectors rose on the day apart from energy .SPNY, which fell 1.2% with the slide in oil prices.

The Dow Jones Industrial Average .DJI rose 435.98 points, or 1.4%, to 31,581.28, the S&P 500 .SPX gained 71.68 points, or 1.83%, to 3,979.87 and the Nasdaq Composite .IXIC added 246.99 points, or 2.14%, to 11,791.90.

The pan-European STOXX 600 index .STOXX lost 0.57% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.06%.

U.S. stocks had been selling off since mid-August after hawkish comments from Powell and signs of an economic slowdown in Europe and China. (Full Story)

Helping the U.S. dollar recently, Japan's dovish monetary policy and Europe's economic problems have contrasted with a relatively stronger U.S. economy and a hawkish Fed. (Full Story)

The U.S. currency soared as high as 144.99 yen JPY=EBS, hitting the level for the first time since August 1998. It is now within a large leap of its 1998 high of 147.43. The dollar was last up 0.9% at 144.09 yen.

Against sterling GBP=D3, the greenback hit $1.1407, the lowest since 1985 and last down 0.1% at $1.1509.

Liz Truss, who took over as Britain's prime minister on Tuesday, vowed immediate action to help the economy, which faces double-digit inflation and an expected lengthy recession. (Full Story)

The euro EUR=EBS fell below 99 cents after dipping as low as $0.9864 on Tuesday, its lowest since October 2002.

On Wednesday, Europe's single currency was last up 0.8% at US$0.9985, and the U.S. dollar index, which measures the greenback against a basket of currencies, was last down 0.7%.

In the energy market, Brent crude LCOc1 futures settled down $4.83 at $88 a barrel, falling below $90 a barrel for the first since Feb. 8. U.S. West Texas Intermediate crude CLc1 settled down $4.94, or 5.7%, to $81.94, its lowest since January. (Full Story)

Spot gold XAU= added 0.9% to $1,716.70 an ounce.

Stocks jump as Treasury yields ease and oil prices sell off
 

Related Articles

Take Five: Everything to play for
Take Five: Everything to play for By Reuters - Nov 25, 2022 2

LONDON (Reuters) - The final month of the year is almost here but there's no time yet to slow down, with latest U.S. jobs numbers and euro zone inflation data coming up. And don't...

Dollar edges up in range-bound holiday markets
Dollar edges up in range-bound holiday markets By Reuters - Nov 25, 2022 3

By Saqib Iqbal Ahmed NEW YORK (Reuters) - The dollar edged higher across the board on Friday in a quiet session following the U.S. Thanksgiving holiday but remained near...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
David Hawley
David Hawley Sep 07, 2022 5:45
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The only stat reading from today's obscure and meaningless list is the propensity to fa rt statistic which usually coincides and is co-related to the monthly baked bean sales
David Hawley
David Hawley Sep 07, 2022 5:42
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The only stat missing from today's obscure and meaningless list is the propensity to *******index reading which usually coincides and is co-related with the monthly baked bean sales
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email