(Updates to reflect market close)
* China exports rise 3.5% y/y vs forecast -15.7%
* Weekly U.S. initial jobless claims reach 3.169 million
* Long-term U.S. yields lifted by tidal wave of new debt
* Turkey's lira slumps to record low
* Oil swings around $30 a barrel
By Imani Moise
NEW YORK, May 7 (Reuters) - World shares rose on Thursday
after China's exports came in far stronger than expected,
suggesting an economic recovery was under way, but the dollar
fell from two-week highs as U.S. data showed millions more
Americans joined the ranks of the unemployed.
Gold jumped 2% as the weak U.S. data heightened fears over a
coronavirus-induced global downturn.
Initial U.S. jobless claims for unemployment benefits
totaled a seasonally adjusted 3.169 million for the week ended
May 2, down from a revised 3.846 million in the prior week, the
Labor Department's weekly report showed. The data reinforced economists' expectations of a protracted
recovery for the U.S. economy, which is reeling from lockdowns
across the country to slow the spread of the coronavirus
pandemic.
"The pace is slowing down, which is providing some optimism
that we are finally going to see things bottom out," Ed Moya,
senior market analyst at OANDA, said of the unemployment claims.
Investors took heart on news that Moderna Inc MRNA.O said
it could start trials for a COVID-19 vaccine by early summer.
"The more vaccine trials that are out there, the more
optimism that one will stick," Moya said.
Technology stocks again led Wall Street higher as investors
bet on a recovery, pushing the Nasdaq into the black for the
year after equity markets had plunged from all-time highs in
February.
Stocks globally were bolstered after Beijing reported a 3.5%
rise in exports in April from a year earlier, confounding
expectations of a 15.7% fall and outweighing a 14.2% drop in
imports. The strong showing boosted speculation China could recover
from its coronavirus lockdown more quickly than expected and
support global growth in the process.
The Dow Jones Industrial Average .DJI rose 211.25 points,
or 0.89%, to 23,875.89, the S&P 500 .SPX gained 32.77 points,
or 1.15%, to 2,881.19, and the Nasdaq Composite .IXIC added
125.27 points, or 1.41%, to 8,979.66,.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.93%.
"It's clear that this virus has gone from east to west and
we are now seeing that in the data," said Societe Generale's Kit
Juckes, pointing to the China numbers and relatively better
purchasing managing data in countries such as Australia.
But with the full economic impact of the pandemic still to
be seen and huge amounts of debt potentially pushing up
borrowing costs, "the market is hugely split between die-hard
bears and buy-on-dip buyers," he added.
U.S. President Donald Trump said he would be able to report
in about a week or two whether China is meeting its obligations
under a trade deal, as Washington weighed punitive action
against Beijing over its handling of the coronavirus outbreak.
And much of the economic data remained grim, with the Bank
of England warning that the coronavirus crisis could cause the
country's biggest economic slump in 300 years.
"Despite their dizzying rally, we continue to be cautious on
equities in the near term," Luca Paolini, chief strategist at
asset manager Pictet, said. "Markets seem to be overestimating
the speed of economic recovery."
WORLD'S BIGGEST BORROWER
Bond markets saw one of the largest shifts in a while after
the U.S. Treasury said it would borrow $2.999 trillion during
the June quarter, five times more than the previous
single-quarter record. US/ It will sell $96 billion next week
alone, and a surprising amount of that will be at longer tenors,
which in turn pushed up long-term yields and steepened the
curve.
The 30-year bond US30YT=RR last rose 78/32 in price to
yield 1.3214%, from 1.413%.
An early rise in Italy's yields to over 2% reflected worries
caused by a German court ruling this week targeting the European
Central Bank's bond purchase program. The U.S. dollar fell from two-week highs as investors booked
profits on the currency's gains this week before Friday's U.S.
nonfarm payrolls report for April, which could show massive job
losses amid the COVID-19 pandemic. The dollar index =USD fell
0.323%, with the euro EUR= up 0.33% to $1.083. The euro was
hurt by a gloomy economic outlook from the European Commission.
In commodity markets, gold XAU= eased on expectations that
supplies will grow as bullion refineries resume operations, but
then turned higher. U.S. gold futures GCcv1 settled 2.2%
higher at $1,725.80. GOL/
Oil prices fell after being up more than 6% earlier Thursday
as global demand worries offset news that Saudi Arabia increased
its official crude selling price and the surprise rise in
Chinese exports last month. O/R
U.S. crude CLc1 settled 44 cents lower at $23.55 per
barrel and Brent LCOc1 was down 26 cents at $29.46.
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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
Stocks and oil lift out of coronavirus slump https://tmsnrt.rs/2W6G3f2
Turkey eroding financial buffer png https://tmsnrt.rs/3bR8V0k
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