Stocks rally worldwide, crude rebounds on supply
Global equity markets rallied on Tuesday, lifted by mining companies in Europe and surging technology shares on Wall Street, while crude oil rebounded on indications that supply is gradually tightening, especially in the United States.
U.S. stocks surged, with information technology shares <.splrct> rising 1.45 percent, while European shares snapped a three-day losing streak in a broad advance.
A 2.1 percent slide in the benchmark S&P 500 index over the past two weeks led investors to step in, said Dennis Dick, a proprietary trader at Bright Trading LLC in Las Vegas.
"Every time we get a pull-back it`s the same damn thing," said Dick, calling market conditions the most resilient he has seen in his 18 years. "It`s a `buy the dip` mentality market and it doesn`t go away. They call it a correction now, 2 percent!"
U.S. Treasury and gold prices fell ahead of an annual meeting this week of central bankers in Jackson Hole, Wyoming. Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi are among the scheduled speakers.
A broadly resurgent U.S. dollar prompted investors to square positions in a thin market before the central bank conference, an annual event organised by the Kansas City Fed, begins on Thursday.
With investors caught between a generally benign economic backdrop that prevents too much of a sell-off without 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 0.83 percent.
Wall Street indexes were also helped by 1.2 percent gains in materials <.splrcm> and healthcare <.spxhc> stocks.
The Dow Jones Industrial Average <.dji> closed up 196.14 points, or 0.9 percent, to 21,899.89. The S&P 500 <.spx> gained 24.14 points, or 0.99 percent, to 2,452.51, and the Nasdaq Composite <.ixic> climbed 84.35 points, or 1.36 percent, to 6,297.48.
In Europe, 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, as a rally in base metals pushed copper to a three-year high and nickel to its strongest level 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 bank conference in Jackson Hole. The dollar index <.dxy> rose 0.43 percent against a trade-weighted basket of its currencies, to 93.497. The euro
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.