GLOBAL MARKETS-Wall St advances, gold rises as stimulus talks progress

(Updates to afternoon)
By Stephen Culp
NEW YORK, Oct 9 (Reuters) - U.S. stocks joined their global
counterparts in the black, and were on track for weekly gains on
Friday as ongoing fiscal aid talks and growing expectations for
Democratic election victories revived hopes over economic
stimulus.
Gold surged and the dollar dropped as investors bet on the
increased probability of forthcoming coronavirus relief.
Wrangling in Washington over pandemic aid has dominated
markets this week, which began with President Donald Trump
halting negotiations on a comprehensive aid package.
U.S. House Speaker Nancy Pelosi and Treasury Secretary
Steven Mnuchin continue to hammer out a deal, even as Senate
Majority Leader Mitch McConnell expressed doubt that consensus
could be reached before the election. But a report from the Wall Street Journal said Mnuchin was
drafting a proposal worth $1.8 trillion, closer to the $2.2
trillion package Pelosi has floated.
"It's 'will they or won't they?', but the market is maybe
becoming less concerned about the timing of a stimulus package,"
said Chuck Carlson, chief executive officer at Horizon
Investment Services in Hammond, Indiana.
"I think there's going to be a stimulus package within the
next two months and probably sooner," Carlson added.
Trump expressed a desire to return to the campaign trail a
week after he announced that he had contracted COVID-19, but
aides said Trump was unlikely to hold any in-person events until
Monday at the earliest. Reuters/Ipsos polls show Trump's approval rating plummeting,
with Americans steadily losing confidence in his handling of the
pandemic, while Democratic challenger Joe Biden makes gains in
several key swing states. "The market is saying there's a good chance (fiscal relief)
might not happen until after the election," said Carlson, adding
"if there's a 'blue wave' the package will be more significant."
Next week, investors' attention will shift to reporting
season, and analysts now see third quarter S&P 500 earnings, in
aggregate, falling by 21% year-on-year, according to Refinitiv.
The Dow Jones Industrial Average .DJI rose 137.69 points,
or 0.48%, to 28,563.2, the S&P 500 .SPX gained 26.55 points,
or 0.77%, to 3,473.38 and the Nasdaq Composite .IXIC added
128.74 points, or 1.13%, to 11,549.72.
European stocks posted a second straight week of gains on
upbeat earnings forecasts, while investors paid close attention
to fiscal aid talks in the United States. The pan-European STOXX 600 index .STOXX rose 0.55% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.77%.
Yields on longer-dated Treasury bonds reversed earlier dips
to edge higher. Benchmark 10-year notes US10YT=RR last fell 2/32 in price
to yield 0.7737%, from 0.767% late on Thursday.
The 30-year bond US30YT=RR last fell 5/32 in price to
yield 1.5724%, from 1.566% late on Thursday.
Crude prices fell after an offshore oil worker strike in
Norway ended eased supply pressures, but production was reduced
in the United States due to Hurricane Delta. U.S. crude futures CLcv1 settled at $40.60 per barrel,
down 1.43%, while Brent LCOcv1 fell 1.13% to settle at $42.85
per barrel.
The dollar dropped against a basket of world currencies on
fiscal relief optimism and the growing likelihood of a Biden
victory. The dollar index .DXY fell 0.59%, with the euro EUR= up
0.58% to $1.1826.
The Japanese yen strengthened 0.39% versus the greenback at
105.63 per dollar, while Sterling GBP= was last trading at
$1.3035, up 0.79% on the day.
Gold prices jumped as the increased likelihood of stimulus
pushed investors to bullion as a hedge against possible
inflation. Spot gold XAU= added 1.9% to $1,928.21 an ounce.

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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
Stocks versus COVID https://tmsnrt.rs/2GCoYoa
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