Left Menu
Development News Edition

Stocks rise after sell-off; yields up on comments by Fed chair

Stocks on world markets edged higher on Wednesday, following a recent sell-off on rapidly escalating China-U.S. trade tensions.

Reuters | Updated: 21-06-2018 02:46 IST | Created: 21-06-2018 02:46 IST
Stocks rise after sell-off; yields up on comments by Fed chair
The S&P 500 snapped a three-session losing streak. (Image Credit: Pixabay)

Stocks on world markets edged higher on Wednesday, following a recent sell-off on rapidly escalating China-U.S. trade tensions, while Treasury yields rose after the Federal Reserve chairman said the U.S. central bank should continue with a gradual pace of interest rate hikes.

Fed Chairman Jerome Powell cited a labor market that does not seem to be overly tight in advocating staying the course on rate hikes.

The S&P 500 snapped a three-session losing streak, while the Nasdaq posted a record high close, boosted by gains in Facebook Inc and Microsoft Inc.

Shares in Boeing Co, which has acted as a proxy for trade fears because it is the single largest U.S. exporter to China, rose 0.5 percent after six straight declines. The planemaker said on Wednesday it was confident that a new mid-market jet could enter service in 2025.

"Part of it might be people were selling stocks the past couple of days in order of where they see tariff priority," said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

The Dow Jones Industrial Average ended down slightly, a day after it erased its year-to-date gains amid President Donald Trump's latest tariff threats against Chinese goods.

The Dow Jones Industrial Average fell 42.41 points, or 0.17 percent, to 24,657.8, the S&P 500 gained 4.73 points, or 0.17 percent, to 2,767.32 and the Nasdaq Composite added 55.93 points, or 0.72 percent, to 7,781.52.

The pan-European FTSEurofirst 300 index rose 0.31 percent and MSCI's gauge of stocks across the globe gained 0.35 percent.

In the U.S. Treasury market, Powell's comments on rate hikes boosted yields.

A slew of corporate bond supply also helped drive the sell-off in Treasuries, pushing yields higher, analysts said.

Benchmark 10-year notes last fell 12/32 in price to yield 2.937 percent, from 2.893 percent late on Tuesday. Before Powell's remarks, U.S. yields had been little changed.

The U.S. dollar was steady, near an 11-month peak against a basket of major currencies, as China's signal of tolerance of a stronger yuan offset anxiety about the global trade dispute.

Before Wednesday's market open, the People's Bank of China cut the yuan's midpoint rate to 6.4586 per dollar, the weakest since Jan. 12 and much stronger than market models had suggested.

In U.S. afternoon trading, an index that tracks the dollar against the euro, yen, sterling and three other currencies was little changed at 95.090, after touching an 11-month peak of 95.299 earlier.

In commodities markets, copper prices eased again after an inventory rise highlighted healthy supplies, extending declines from Tuesday tied to trade war worries.

Copper lost 0.36 percent to $6,815.50 a tonne.

Oil prices were mixed, with U.S. crude futures supported by a drop in domestic inventories.

U.S. crude rose $1.15 to settle at $66.22 a barrel, Brent fell 34 cents to $74.74.



Uganda COVID-19 response: Was off to a good start but reopening dwindled prospects

Uganda has shown success in using health information to enhance efficiency of disease surveillance, reporting and monitoring. The success, however, has critical challenges confronting it as the country resumes normal activities....

New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...


Latest News

Yogi Adityanath set to address 6 poll rallies in Bihar

Uttar Pradesh Chief Minister Yogi Adityanath will address six rallies in the poll-bound state of Bihar starting today. On Wednesday, he will address gatherings in Siwan, East Champaran, and Chanpatia Assembly in Paschim Champaran districtTh...

India reports 43,893 new COVID-19 cases, tally stands at 79,90,322

With 43,893 new COVID-19 infections, Indias total cases surged to 79,90,322 on Wednesday, said the Union Ministry of Health and Family Welfare MoHFW. With 508 new deaths, the death toll has mounted to 1,20,010, according to the Union Health...

Mani Ratnam, Jayendra Panchapakesan to present Tamil anthology 'Navarasa' for Netflix

Filmmakers Mani Ratnam and Jayendra Panchapakesan are joining hands to present the Tamil film anthology Navarasa, based on the nine rasas or emotions for Netflix, the streamer announced on Wednesday. The nine short films will narrate storie...

Gujarat: Stationery manufacturers expect low sales ahead of 'Chopda Pujan' due to COVID-19

As people around the country gear up to celebrate Diwali amid the COVID-19 pandemic, stationery manufacturers in Ahmedabad say that they expect very low sales this year ahead of Chopda Pujan. The Chopda Pujan book worship is performed on Di...

Give Feedback