(Updates to U.S. markets open, changes dateline from LONDON to
NEW YORK, changes byline)
By Stephen Culp
NEW YORK, Oct 8 (Reuters) - U.S. and world stocks advanced
and crude prices gained ground on Thursday in anticipation of
further progress in stimulus negotiations.
Reports that U.S. House Speaker Nancy Pelosi and the White
House could hammer out a $25-billion rescue package for
commercial airlines boosted that sector and fueled hopes that
broader pandemic relief could be forthcoming, if only
incrementally.
This sentiment was echoed by President Donald Trump, who
urged Congress to pass money for airlines, small businesses, and
relief checks for individuals after abruptly calling off
negotiations. "The global markets continue to follow each other almost on
a daily basis," said Peter Cardillo, chief market economist at
Spartan Capital Securities in New York.
"While we have moments of volatility as political rhetoric
heats up ahead of the election, the market's overall sentiment
is positive," Cardillo added. "The market has already priced in
a change of guard at the White House."
Democratic nominee Joe Biden has been advancing in the polls
ahead of the Nov. 3 election, now less than a month away.
The U.S. Labor Department reported jobless claims, while
edging lower last week, remain stubbornly high and well above
the highest numbers at the nadir of the Great Recession.
"There's no change in the (jobless claims) trend and nothing
to suggest that the unemployment problem is going to dissipate
any time soon," Cardillo said.
The Dow Jones Industrial Average .DJI rose 100.78 points,
or 0.36%, to 28,404.24, the S&P 500 .SPX gained 21.45 points,
or 0.63%, to 3,440.9 and the Nasdaq Composite .IXIC added
58.15 points, or 0.51%, to 11,422.75.
European stocks joined the world rally in anticipation of
movement in coronavirus aid negotiations.
The pan-European STOXX 600 index .STOXX rose 0.99% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.71%.
Emerging market stocks rose 0.78%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.78%
higher, while Japan's Nikkei .N225 rose 0.96%.
Treasury prices firmed and the yield curve flatted a bit
amid persistent pandemic relief uncertainties and
weaker-than-expected economic data. Benchmark 10-year notes US10YT=RR last rose 5/32 in price
to yield 0.7685%, from 0.785% late on Wednesday.
The 30-year bond US30YT=RR last rose 17/32 in price to
yield 1.5656%, from 1.589% late on Wednesday.
Crude prices topped $43 per barrel as output shutdowns
related hurricanes in the Gulf of Mexico and an ongoing oil
worker strike in Norway pressured supply. U.S. crude CLcv1 rose 2.08% to $40.78 per barrel and Brent
LCOcv1 was last at $42.84 per barrel, up 2.02% on the day.
The dollar edged higher against a basket of world currencies
as investors awaited further news on stimulus talks.
The dollar index .DXY rose 0.05%, with the euro EUR=
down 0.07% to $1.1752.
The Japanese yen weakened 0.04% versus the greenback at
106.03 per dollar, while Sterling GBP= was last trading at
$1.2929, up 0.09% on the day.
Market optimism also lifted gold. Spot gold XAU= added 0.1% to $1,888.96 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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