Left Menu
Development News Edition

GLOBAL MARKETS-Stocks, U.S. yields rise after strong economic data

Reuters | Updated: 16-05-2019 21:23 IST | Created: 16-05-2019 20:53 IST
GLOBAL MARKETS-Stocks, U.S. yields rise after strong economic data
Image Credit:

World stock markets and U.S. benchmark bond yields gained on Thursday following strong economic data as investors assessed the latest developments in global trade relations.

A spike in U.S.-China tensions over import tariffs has convulsed markets recently as investors seek to parse statements from government leaders to gauge the direction of talks. News that President Donald Trump is expected to delay auto tariffs appeared to improve the trading tone on Wednesday, but later in the day, the Trump administration hit Chinese telecoms giant Huawei with severe sanctions.

"The market is really having a hard time pricing in this trade war," said Mark Hackett, chief of investment research at Nationwide. "There was a belief earlier in the week that it was going to be catastrophic and we have gained back all of that decline. In my opinion, it is probably a little too optimistic to declare victory." On Wall Street, the Dow Jones Industrial Average rose 273.04 points, or 1.06%, to 25,921.06, the S&P 500 gained 37.33 points, or 1.31%, to 2,888.29 and the Nasdaq Composite added 107.94 points, or 1.38%, to 7,930.08.

Shares of Cisco Systems and Walmart both gave boosts to the S&P 500 and the Dow after their respective earnings reports. Cisco shares rose 6.4% and Walmart rose 3.3%. The Philadelphia semiconductor index fell 0.9% following the Huawei news.

The pan-European STOXX 600 index rose 1.14%. MSCI's gauge of stocks across the globe gained 0.82%.

U.S. homebuilding increased more than expected in April and activity in the prior month was stronger than initially thought. In a separate report, the number of Americans filing applications for unemployment benefits fell more than expected last week. U.S. Treasury yields rose following the strong economic data.

Benchmark 10-year notes last fell 9/32 in price to yield 2.4104%, from 2.379% late on Wednesday. The U.S. dollar rose against a basket of currencies as investors focused on trade war tensions, while the euro was hurt by concerns about next week's European parliamentary elections.

The dollar index rose 0.25%, with the euro down 0.23% to $1.1174. "The risk is that we get more populist comments, such as from the Italian Deputy PM," said Credit Agricole FX strategist Manuel Olivieri. "Italy remains one of the factors keeping euro downside risks high."

Oil prices rose for a third day running as fears of supply disruption amid heightened tensions in the Middle East overshadowed swelling U.S. crude inventories. U.S. crude rose 2.14% to $63.35 per barrel and Brent was last at $73.13, up 1.89% on the day.


TRENDING

OPINION / BLOG / INTERVIEW

Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Videos

Latest News

China using tactical situation on ground to its advantage: Pompeo

China is using a tactical situation on the ground to its advantage and it has been making threats, like the one that is happening on its border with India, for a long time, US Secretary of State Mike Pompeo said on Sunday. Pompeo, respondin...

SpaceX Crew Dragon delivers two NASA astronauts to International Space Station

Nearly 24 hours after launching from Florida, SpaceXs Crew Dragon capsule delivered NASA astronauts Bob Behnken and Doug Hurley to the International Space Station on Sunday, marking the first U.S. space capsule to do so with a crew since 20...

Black Lives Matter protests spread to UK

Thousands of people gathered across London on Sunday to protest against the killing of an unarmed black man by a police officer in the US as the Black Lives Matter protests spread to the UK. Protesters held up signs saying Justice for Georg...

Militants in Burkina Faso kill 35 in separate attacks, govt says

Militants in Burkina Faso attacked a cattle market and a humanitarian convoy, killing at least 35 people, the government said on Sunday.Saturdays violence underscores deep instability in parts of Burkina Faso, which has been battling armed ...

Give Feedback