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Stocks rise on U.S. stimulus bets; gold whipsawed

Stocks rise on U.S. stimulus bets; gold whipsawed

Global stocks rose on Wednesday, ending at their highest since February as investors kept betting on more stimulus in the United States despite doubts, while gold was whipsawed and silver clawed back from a massive drop.

NEW YORK Global stocks rose on Wednesday, ending at their highest since February as investors kept betting on more stimulus in the United States despite doubts, while gold was whipsawed and silver clawed back from a massive drop.

The euro strengthened versus the greenback and the dollar index gave back some recent gains, barely changed mid-way this week following seven consecutive weekly declines.

Recently battered technology stocks reclaimed leadership on Wall Street and the benchmark S&P 500 ended near record highs, even as U.S. Treasury Secretary Steven Mnuchin said the White House and top Democrats in Congress may not reach a deal on coronavirus aid.

Both U.S. parties traded jabs on who was to blame for blocking relief to tens of millions of jobless Americans.

The Dow Jones Industrial Average rose 289.93 points, or 1.05%, to 27,976.84, the S&P 500 gained 46.66 points, or 1.40%, to 3,380.35 and the Nasdaq Composite added 229.42 points, or 2.13%, to 11,012.24.

The S&P ended within 6 points of its closing record high of 3,386.15. The index slipped on Tuesday after seven straight days of gains.

“We’re seeing buyers show up very quickly, any chance they get when the market declines. To me, that’s a very bullish sign,” said Adam Sarhan, chief executive of 50 Park Investments in New York.

MSCI’s gauge of stocks across the globe gained 1.23% to close at its highest since late February.

Emerging market stocks rose 0.25% and Japan’s Nikkei futures rose 2.29%.

GOOD AS GOLD

The 10-year U.S. Treasury last fell 5/32 in price to yield 0.6731%, from 0.658% late on Tuesday, after relatively strong demand greeted a record offering on benchmark notes by the Treasury.

Oil prices climbed after government data showed U.S. oil inventories fell across the board, bolstering hopes for increased fuel demand in the world’s biggest economy.

U.S. crude recently rose 2.28% to $42.56 per barrel and Brent was at $45.32, up 1.84% on the day.

The dollar index fell 0.28%, with the euro up 0.37% to $1.1782.

The Japanese yen weakened 0.38% versus the greenback to 106.89 per dollar, while Sterling ended at $1.3032, down 0.12% on the day.

Gold swung from being down 2.5% to adding 0.3% to $1,917.16 an ounce, a day after it suffered its biggest daily fall in seven years. Silver fell as much as 5.5% and rose as much as 6% after a 15% plunge, the largest in over a decade, on Tuesday.

Bullion has gained 28% so far this year, as investors buy it as a hedge against fears of currency debasement as central banks flood economies with free money in response to the global coronavirus crisis.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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  • First Published: August 13, 2020, 3:07 AM IST
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