Stock market today: S&P 500 climbs as health care, tech gain; Nvidia earnings loom
* MSCI global stock index rebounds after Monday slide
* Trump tweets optimism on China trade, lines up new tariffs
* Italian concerns weigh down euro
* Oil prices jump on drone attack on Saudi Aramco facilities
(Updates with open of U.S. markets; changes dateline, previous
London)
By Lewis Krauskopf
NEW YORK, May 14 (Reuters) - Global stocks rebounded on
Tuesday from two-month lows as investors took heart from
comments of U.S. and Chinese officials a day after a spike in
tensions between the world's two largest economies rattled
financial markets.
Fears that the United States and China were spiraling into a
fiercer, more protracted trade dispute that could derail the
global economy have shaken investors in the past week. On
Monday, MSCI's gauge of stocks across the globe .MIWD00000PUS
posted its biggest one-day decline in over five months.
On Tuesday, the MSCI index gained 0.42%.
U.S. President Donald Trump sounded optimistic about
prospects for a trade deal even as his administration readied
25% tariffs on all remaining Chinese imports, while the Chinese
government said the two sides had agreed to keep talking. This
followed Washington's decision last week to hike its levies on
$200 billion of Chinese imports to 25% from 10%. “It's likely that it will take markets a day or two to
adjust to this increased rhetoric around trade, because markets
up until a week ago thought that trade had been put to bed,”
said Carol Schleif, deputy chief investment officer with Abbot
Downing in Minneapolis.
The Dow Jones Industrial Average .DJI rose 196.33 points,
or 0.78%, to 25,521.32, the S&P 500 .SPX gained 23 points, or
0.82%, to 2,834.87 and the Nasdaq Composite .IXIC added 69.29
points, or 0.91%, to 7,716.31.
The benchmark S&P 500 recorded its biggest one-day loss
since Jan 3 on Monday, after China struck back in the trade
dispute by saying it would impose higher tariffs on a range of
U.S. goods. On Tuesday, the pan-European STOXX 600 index .STOXX rose
0.73%.
"There is a bit of a rebound, however it needs to be seen if
it will last or not," said Markus Huber, trader at City of
London Markets.
In another sign trade tensions are hurting the economic
outlook, Germany's ZEW institute said investors' mood had
deteriorated unexpectedly in May. The dollar index .DXY , which measures the greenback
against a basket of currencies, rose 0.17%, with the euro EUR=
down 0.12% to $1.1209.
The euro slid after Italy's deputy prime minister said the
country was ready to break European Union budget rules if
necessary to spur employment. Italian government bond yields
rose sharply. U.S. Treasury yields were little changed. Benchmark 10-year
notes US10YT=RR last fell 3/32 in price to yield 2.4139%, from
2.405% late on Monday.
Oil prices rose after top exporter Saudi Arabia said
explosives-laden drones launched by a Yemeni armed movement
aligned to Iran had attacked facilities belonging to state oil
company Aramco. U.S. crude CLcv1 rose 1% to $61.65 per barrel and Brent
LCOcv1 was last at $70.92, up 0.98% on the day.
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Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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