Miners, tech lift global stocks, crude rebounds on supply
Global equity markets rose on Tuesday, lifted by mining companies in Europe and technology shares on Wall Street, while crude oil rebounded on indications supply is gradually tightening, especially in the United States.
U.S. Treasury and gold prices fell ahead of an annual meeting this week of central bankers in Jackson Hole, Wyoming, where Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi are due to speak.
A broadly resurgent U.S. dollar prompted investors to square positions in a thin market before the central bank conference begins on Thursday.
With investors caught between a generally benign economic backdrop that prevents too much of a sell-off but lacks a catalyst for new highs, "we do seem to be settling into more of a range-bound market," said Larry Hatheway, chief economist at asset manager GAM.
A gauge of global equity markets, MSCI`s all-country world stock index <.miwd00000pus rose="" percent="" while="" its="" emerging="" markets="" index=""> gained 0.82 percent.
Stocks on Wall Street rallied, lifted by 1.3 percent gain in information technology shares <.splrct> and 1 percent surges in materials <.splrcm> and healthcare <.spxhc>.
The Dow Jones Industrial Average <.dji> rose 166.49 points, or 0.77 percent, to 21,870.24. The S&P 500 <.spx> gained 20.68 points, or 0.85 percent, to 2,449.05 and the Nasdaq Composite <.ixic> added 75.78 points, or 1.22 percent, to 6,288.91.
European shares snapped a three-day losing streak as the FTSEurofirst 300 index <.fteu3> of leading European shares rose 0.9 percent.
British subprime lender Provident Financial
Still, the overall blue-chip FTSE 100 equity index <.ftse> closed up 0.94 percent, lifted by a rally in base metals that pushed copper to a three-year high and nickel to its strongest in eight months on the London Metal Exchange.
"There`s nothing really fundamental to drive things onwards from here, so I think it`s a bit of misplaced euphoria and trend-following buyers jumping on the bandwagon," said Robin Bhar, head of metals research at Societe Generale in London.
Europe`s basic resources sector <.sxpp> enjoyed a second session of gains and was the top-gaining sector, supported by a rally in iron ore prices.
Benchmark 10-year U.S. Treasury notes
In European debt markets, Italian government bond yields jumped, stretching the gap with German bunds to a five-week high, in the wake of proposals to introduce a parallel currency in Italy that have upped the ante for elections due next year.
Italy`s 10-year bond yield, which moves inversely to the price, climbed 8 basis points to a three-week high at 2.11 percent
Oil prices rose. Benchmark Brent crude
"U.S. crude oil stocks have been falling consistently in recent weeks," said Fawad Razaqzada, market analyst at futures brokerage Forex.com.
The dollar rallied after falling for two straight days, benefiting from the euro`s decline following weaker-than-expected euro zone data as well as investors adjusting positions ahead of the central bankers` conference in Jackson Hole.
The dollar index <.dxy> rose 0.46 percent against a trade-weighted basket of its currencies to 93.524.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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