U.S. Stocks Join in Global Rally; Dollar Weakens, Russian ruble weakened
September 28, 2020 @ 17:58 +03:00
U.S. stocks jumped after four weeks of declines and European shares added the most in three weeks as banks rebounded. The dollar weakened. Treasuries and German bonds were little changed. The pound strengthened on hopes that U.K. and European Union officials will make progress as a key week of Brexit talks begins.
“It is hard to become too bearish,” said Mark Dowding, the chief investment officer at BlueBay Asset Management. “As we look into 2021, growth should be stronger, policy will stay supportive with further fiscal spending. A vaccine is also expected to be deployed and life to return closer to normal by the middle of next year.”
Stronger economic data from China also lifted investor sentiment. Data over the weekend showed profits at Chinese industrial companies grew for a fourth consecutive month in August.
The advance in global stocks was broad, instead of tech-focused, a sign that optimism about global growth and the end of pandemic lockdowns is returning. Still, equities remain on course for the first month of losses since March after investors sold overheated stocks and fears about a resurgence in the virus weighed on airlines and retailers.
In emerging markets, the Turkish lira and Russian ruble weakened as fighting between Armenia and Azerbaijan curbed appetite for the currencies of their bigger neighbors.
The S&P 500 Index gained 1.7% as of 10:33 a.m. New York time.The Stoxx Europe 600 Index climbed 2.3%.The MSCI Asia Pacific Index increased 1.2%.The MSCI Emerging Market Index climbed 1.3%.
The Bloomberg Dollar Spot Index fell 0.3%.The euro gained 0.3% to $1.1661.The British pound jumped 1% to $1.287.The Japanese yen strengthened 0.1% to 105.48 per dollar.
The yield on 10-year Treasuries rose less than 1 basis point to 0.66%.Germany’s 10-year yield rose less than one basis point to -0.53%.Britain’s 10-year yield rose one basis point to 0.20%.
West Texas Intermediate crude rose 0.7% to $40.54 a barrel.Gold strengthened 0.6% to $1,871.77 an ounce.
U.S. Stocks Join in Global Rally; Dollar Weakens: Markets Wrap, Bloomberg, Sep 28