GLOBAL MARKETS-Factory data, vaccine bets power stocks higher; U.S. dollar dips

GLOBAL MARKETS-Factory data, vaccine bets power stocks higher; U.S. dollar dips

Reuters  | Jul 02, 2020 02:50

GLOBAL MARKETS-Factory data, vaccine bets power stocks higher; U.S. dollar dips

* Factory data points to global increase in activity
* Gold touches 8-year peak before pulling back
* Crude prices rise on inventories, factory data
* Graphic: World FX rates in 2020

(Updates prices, adds comment)
By Rodrigo Campos
NEW YORK, July 1 (Reuters) - Stocks across the globe rose on
Wednesday following a string of data pointing to a recovery in
manufacturing and on bets for a COVID-19 vaccine, while the
risk-on mood pushed the U.S. dollar lower.
Germany's manufacturing sector contracted at a slower pace
in June, while activity in the United States hit a 14-month
high. French factory activity rebounded into growth, and
activity in China's factories offered further signs that the
world's second-largest economy may have passed the worst of the
devastation caused by the pandemic. On Thursday, the market's focus will be on the U.S. non-farm
payrolls report.
"The manufacturing number adds a boost to investor
confidence," said Andre Bakhos, managing director at New Vines
Capital LLC in Bernardsville, New Jersey. "Now the market is
positioning itself in anticipation for tomorrow's numbers."
Pfizer shares PFE jumped 4% after a COVID-19 vaccine
developed jointly with Germany's BioNTech BNTX.O was found to
be well tolerated, the fourth early-stage drug to show promise
in human testing. The news comes as a Reuters analysis showed coronavirus
cases more than doubled in 14 U.S. states last month and fears
are growing that the case-load could prompt fresh lockdowns.
The Dow Jones Industrial Average .DJI fell 24.95 points,
or 0.1%, to 25,787.93, the S&P 500 .SPX gained 15.05 points,
or 0.49%, to 3,115.34 and the Nasdaq Composite .IXIC added
81.72 points, or 0.81%, to 10,140.48.
The pan-European STOXX 600 index .STOXX rose 0.24% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
Emerging market stocks rose 0.61%, while Japan's Nikkei
futures NKc1 lost 0.56%.
Overnight, MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS closed 0.44% higher.
The stronger data and vaccine news weighed on the dollar,
which has been bid on days when traders are less risky.
"There's definitely a risk-on tone to the market, which
continues to bet on the fact that we're past the worst point of
COVID. But I think the jury is still out on that judgment," said
Boris Schlossberg, managing director at BK Asset Management in
New York.
"There's a significant risk of reclosing some of the states.
There's still a lot of risk-off flows, and the dollar could be
the beneficiary of those flows," he added.
The dollar index =USD fell 0.216%, with the euro EUR= up
0.13% to $1.1246. The Japanese yen strengthened 0.41% versus the
greenback at 107.50 per dollar, while Sterling GBP= was last
trading at $1.2471, up 0.58% on the day.
The global rise in manufacturing activity put a bid under
energy prices, also supported by a bigger-than-expected drop in
U.S. crude inventories.
"Largely we are moving forward in the way of demand and not
backward, despite the negative view of coronavirus cases
rising," said Tony Headrick, energy markets analyst at CHS
U.S. crude CLc1 recently rose 1.25% to $39.76 per barrel
and Brent LCOc1 was at $41.99, up 1.74% on the day.
Treasury yields also rose with the risk-on sentiment.
Benchmark 10-year notes US10YT=RR last fell 11/32 in price
to yield 0.6873%, from 0.653% late on Tuesday.
The 30-year bond US30YT=RR last fell 22/32 in price to
yield 1.4391%, from 1.411%.
Gold XAU= prices rose to their highest in 8 years at
$1,788.96 an ounce, and recently dropped 0.8% to $1,767.09 an
ounce. GOL/

World financial markets in 2020
World FX rates in 2020

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

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.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.