* 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 European markets)
By Chuck Mikolajczak
NEW YORK, Sept 1 (Reuters) - A gauge of global stocks kicked
off September on a higher 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. "We are just getting bombarded by a steady stream of data
which shows almost every day the degree by which the global
economy is bouncing," said Jim Paulsen, chief investment
strategist at The Leuthold Group in Minneapolis.
The Dow Jones Industrial Average .DJI rose 84.5 points, or
0.3%, to 28,514.55, the S&P 500 .SPX gained 15.2 points, or
0.43%, to 3,515.51 and the Nasdaq Composite .IXIC added 145.05
points, or 1.23%, to 11,920.51.
The gains pushed the S&P 500 and Nasdaq to intraday 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.
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
0.35%.
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 has dropped
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 after comments from Fed
Governor Lael Brainard, who said on Tuesday 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 0.138%, with the euro EUR=
down 0.19% to $1.1913.
Earlier in the session the euro climbed above $1.20 for the
first time since May 2018.
Benchmark 10-year U.S. Treasury notes US10YT=RR last rose
5/32 in price to yield 0.677%, from 0.693% late on Monday.
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 rose 0.84% to $42.97 per barrel and Brent
LCOc1 was at $45.73, up 0.99% on the day.
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2020 Global asset performance https://tmsnrt.rs/3iA4Cd2
Dollar's dive in 2020 Dollar's dive in 2020 https://tmsnrt.rs/2QISGtt
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