Bullish indicating open at $55-$60, IPO prices at $37
By David Randall
NEW YORK, May 12 (Reuters) - World equity markets inched
higher and safe-haven bonds fell on Tuesday as stronger economic
data from China and upbeat corporate earnings in Europe
overshadowed concerns about a potential second wave of
coronavirus infections.
Stock markets have rebounded sharply in recent weeks as the
spread of the novel coronavirus was curbed in the largest
economies of Asia and Europe, while parts of the U.S. economy
began to reopen after weeks of lockdowns.
"We have had a rally that has not been loved by everybody,"
said Hans Peterson, global head of asset allocation at SEB
Investment Management. "That rally might continue for a while
longer, but we have probably gone on to a bit of a consolidation
phase for now," he said, as investors pause to assess how
quickly the global economy can recover.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.39%, following modest advances in Europe and slight
losses in Asia.
In early trading on Wall Street, the Dow Jones Industrial
Average .DJI rose 149.05 points, or 0.62%, to 24,371.04, the
S&P 500 .SPX gained 13.75 points, or 0.47%, to 2,944.07 and
the Nasdaq Composite .IXIC added 51.42 points, or 0.56%, to
9,243.77.
"Investors are more focused on the path ahead than the
economic damage from the wake of the COVID-19 pandemic," said
Craig W. Johnson, technical market strategist at Piper Sandler &
Co, referring to the disease caused by the new coronavirus.
"While the fundamental fallout is historic, expectations
remain low, and the fiscal and monetary policy response has been
unprecedented."
China reported its first rise in car sales in 22 months and
the removal of tariffs on some U.S imports as part of a Phase
One agreement to ease trade tensions with the United
States
In Europe, mobile operator Vodaphone beat earnings
expectations and maintained its dividend while Logistics group
Deutsche Post said it saw business normalizing in Europe.
Safe-haven assets such as the dollar and government bonds
inched lower on hopes for an economic recovery. Benchmark
10-year notes US10YT=RR last rose 1/32 in price to yield
0.7225%, from 0.726% late on Monday.
Late on Monday, the Fed said it would start purchasing
shares of exchange-traded funds that invest in bonds, though
policymakers also downplayed the likelihood of its interest
rates being cut into negative territory. An unexpected commitment from Saudi Arabia to deepen
production cuts in June to help drain the supply glut caused by
the coronavirus pandemic helped bolster oil prices U.S. crude CLc1 was up 6.3% at $25.66 per barrel and Brent
LCOc1 was at $30.49, up 2.9% 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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