(Updates through close of U.S. trading)
By David Randall
NEW YORK, May 14 (Reuters) - Global equity benchmarks gained
late on Thursday, with safe-haven bonds also rising as investors
shrugged off disappointing U.S. jobs data and took comfort in
the possibility of states re-opening after lockdowns and fueling
an economic recovery.
Stock markets have rallied more than 30% since their March
lows following unprecedented government stimulus measures and
central bank interventions to counter the impact of economic
lockdowns. Federal Reserve Chairman Jerome Powell quashed talk
of U.S. interest rates going negative to kick-start investment.
Like the Fed, Bank of England chief Andrew Bailey said
Thursday it was not considering "the very big step" of sub-zero
rates while the Bank of Japan said it was not
planning to go even deeper into negative territory.
U.S. President Donald Trump said on Thursday that he would
be open to negotiating another possible stimulus bill.
"We should see accelerating spending in the future, which is
very good for economic growth," said Jamie Cox, managing partner
at Harris Financial Group.
Cox said a J.P. Morgan report showing credit card spending
dropping 40% in March and early April compared with last year
suggests non-essential spending will trend higher as lock-downs
roll off. MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.03%.
The Dow Jones Industrial Average .DJI rose 377.37 points,
or 1.62%, to 23,625.34, the S&P 500 .SPX gained 32.5 points,
or 1.15%, to 2,852.5 and the Nasdaq Composite .IXIC added
80.55 points, or 0.91%, to 8,943.72.
Initial U.S. claims for state unemployment benefits totaled
a seasonally adjusted 2.981 million for the week ended May 9,
the Labor Department said on Thursday, nearly 500,000 more than
anticipated by economists polled by Reuters Safe-haven assets such as U.S. government bonds also inched
higher. Benchmark 10-year notes US10YT=RR last rose 7/32 in
price to yield 0.6282%, from 0.651% late on Wednesday.
The dollar index =USD rose 0.14%, with the euro EUR=
down 0.16% to $1.0799.
"Absent notable news on the vaccine front, it's hard to
envision a scenario where the market goes up significantly from
here," said Brian Price, head of investments at Commonwealth
Financial Network. "I would say the same from the down side."
"It's most likely going to be range bound," Price said.
China has reimposed movement restrictions near its borders
with North Korea and Russia after a new coronavirus outbreak was
detected there and South Korea was working to contain an
outbreak centered around bars and nightclubs in Seoul.
"It is important to put this on the table: this virus may
become just another endemic virus in our communities, and this
virus may never go away," WHO emergencies expert Mike Ryan told
an online briefing on Wednesday. A dip in U.S. crude oil stockpiles helped push prices higher
The International Energy Agency estimated oil
demand will have a record fall in 2020 keeping
Brent just below $30 a barrel. O/R
U.S. crude CLc1 recently rose 8.9% to $27.54 per barrel
and Brent LCOc1 was at $31.12, up 6.61% on the day.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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