* Stocks climb on manufacturing data
* Dollar bounces from lowest level since April 2018
* For Reuters Live Markets blog on European and UK stock
markets,
please click on: LIVE/
(Updates with close of U.S. markets)
By Chuck Mikolajczak
NEW YORK, Sept 1 (Reuters) - A gauge of global stocks hit a
record to start September on a high note on Tuesday, as data in
major economies showed manufacturing demand rebounding from
coronavirus-restricted lows, while the U.S. dollar bounced off
its lowest in more than two years.
In the United States, stocks added to gains after two
measures of manufacturing activity indicated expansion, with the
reading from the Institute for Supply Management hitting its
highest level in nearly two years. Factory activity in China expanded at the fastest rate in
nearly a decade in August, a private PMI survey showed on
Tuesday, boosting market sentiment overnight and at the European
open. Euro zone manufacturing activity also grew last month to
stay on a path toward recovery, though factory managers remained
wary about investing and hiring more workers. "At the moment the market is seeing a lot of positive
momentum," said Greg Boutle, U.S. head of equity and derivative
strategy at BNP Paribas in New York. "If you get OK- to-good
data and anything from the political landscape that looks like
its moving more toward a compromise that's constructive for
markets."
In addition to the economic data, U.S. stocks got a boost
from technology shares .SPLRCT as Apple rose 3.98% after a
report the company had requested suppliers to make at least 75
million 5G iPhones for later this year. The Dow Jones Industrial Average .DJI rose 215.61 points,
or 0.76%, to 28,645.66, the S&P 500 .SPX gained 26.34 points,
or 0.75%, to 3,526.65 and the Nasdaq Composite .IXIC added
164.21 points, or 1.39%, to 11,939.67.
The gains pushed the S&P 500 and Nasdaq to closing records.
The rebound in manufacturing can be partly attributed to
massive monetary and fiscal stimulus programs implemented across
the globe to support economies battered by the coronavirus
pandemic.
White House chief of staff Mark Meadows said on Tuesday
Senate Republicans are likely to take up their COVID-19 relief
bill next week offering $500 billion in additional federal aid.
But not all data was upbeat and European stocks reversed
course to close lower for a fourth straight session after
Germany cut its GDP forecast for 2021 and a reading on inflation
for the bloc turned negative for the first time in more than
four years. The pan-European STOXX 600 index .STOXX lost 0.35%, while
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.54% at 588.00 after rising as high as 588.10.
The dollar remained weak against a basket of major
currencies despite the optimistic data, falling to its lowest
level since late April 2018 at 91.737. The greenback had fallen
about 1% since Federal Reserve Chair Jerome Powell on Thursday
said the U.S. central bank was shifting to average inflation
targeting. the dollar found some strength later in the session
after comments from Fed Governor Lael Brainard, who said the
central bank will need to introduce new details in the coming
months to help the economy surpass the coronavirus impact and
fulfill the new plan of stronger job growth and higher
inflation. The dollar index =USD rose 0.176%, with the euro EUR=
down 0.23% to $1.1908.
Earlier, the euro climbed above $1.20 for the first time
since May 2018.
Oil prices reversed overnight losses, boosted by the
manufacturing data and forecasts for a sixth weekly draw-down in
U.S. crude inventories." U.S. crude CLc1 settled up 0.35% at $42.76 per barrel and
Brent LCOc1 was at $45.58, up 0.66% on the day.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
2020 Global asset performance https://tmsnrt.rs/3iA4Cd2
Dollar's dive in 2020 Dollar's dive in 2020 https://tmsnrt.rs/2QISGtt
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>