* Wall Street climbs on defensive share gains
* ADP falls short of expectations
* Dollar edges away from two-year lows
(Updates with close of European markets)
By Chuck Mikolajczak
NEW YORK, Sept 2 (Reuters) - A gauge of global stocks
climbed to an intraday record on Wednesday as investors looked
to improving economic data and U.S. congressional negotiations
for more stimulus to support the recovery from coronavirus
lockdowns.
On Wall Street, each of the three major equity indexes moved
higher, but gains were led by defensive sectors such as
utilities .SPLRCU as the high-flying tech sector .SPLRCT
paused.
Earlier data from the ADP National Employment Report showed
private payrolls rose by 428,000 jobs in August, well short of
expectations as the government's aid to support workers and
employers runs out. While July's data was revised higher, the
report indicated a slowing in the labor market recovery.
A separate report showed factory orders rose more than
expected in July, pointing to continued improvement in the
manufacturing sector. The mixed data may have fueled expectations Washington may
feel pressure to reach a deal on a new stimulus act, although on
Tuesday U.S. House of Representatives Speaker Nancy Pelosi said
"serious differences" remain between Democrats and the White
House after a phone call with Treasury Secretary Steven Mnuchin,
adding to the defensive tilt on Wall Street. "A handful of technology stocks have been a great place to
be over the last several months, but at some point you need to
kind of be on the lookout for other opportunities outside of
those concentrated names," said Adam Phillips, director of
portfolio strategy at EP Wealth Advisors in Torrance,
California.
The Dow Jones Industrial Average .DJI rose 282.9 points,
or 0.99%, to 28,928.56, the S&P 500 .SPX gained 37.97 points,
or 1.08%, at 3,564.62, and the Nasdaq Composite .IXIC added
71.50 points, or 0.6%, at 12,011.17.
While tech stocks underperformed the broader U.S. market,
they helped European stocks .STOXX snap a four-day streak of
declines. Tech shares .SX8P jumped 1.98% to close at the
highest in more than 19 years. The pan-European STOXX 600 index .STOXX rose 1.66% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.63%. MSCI's index reached an intraday record for a sixth
straight day.
The dollar strengthened against a basket of major currencies
for a second straight day from lows of more than two years,
while the euro pulled back from the key $1.20 level reached in
the prior session. The dollar index =USD rose 0.598%, with the euro EUR=
down 0.67% to $1.183.
The Russian rouble dropped against the greenback, with
losses accelerating after German Chancellor Angela Merkel said
on Wednesday that Kremlin critic Alexei Navalny, who is in
intensive care in a Berlin hospital, was poisoned with a
Soviet-style Novichok nerve agent in an attempt to murder him.
The rouble weakened 1.65% versus the greenback at 75.25 per
dollar.
Benchmark 10-year notes US10YT=RR last rose 7/32 in price
to yield 0.6494%, down from 0.671% late on Tuesday.
In commodities, retreated as weekly government data showed
U.S. gasoline demand fell in the latest week, an indication that
economic recovery from the pandemic may be slower than expected.
U.S. crude CLc1 recently fell 3.41% to $41.30 per barrel
and Brent LCOc1 was at $44.32, down 2.76% on the day.
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Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Rouble tumbles https://tmsnrt.rs/31Rndf5
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