Forex News 24
  • RSS

news

Google helps stock markets recover, oil stretches above $75

Google helps stock markets recover, oil stretches above $75
админ
24/04/2018

google 300x193 - Google helps stock markets recover, oil stretches above $75

World stocks steadied on Tuesday after three sessions of losses thanks to strong earnings from the likes of Google and as a rise in U.S. bond yields towards the key 3 percent level stalled, while oil prices stretched to fresh highs above $75 a barrel.

European stocks opened broadly higher with blue-chip stock markets in London and Frankfurt 0.3 percent higher, while shares in Paris were flat.

Markets brushed off further signs that Europe’s biggest economy Germany is losing some of its momentum, with the Ifo business climate index falling in April.

In Asia, Japan’s Nikkei added 0.9 percent as a lower yen supported export-heavy firms and Chinese shares posted their strongest gains in two months.

That left MSCI’s world equity index marginally higher on the day after three days of declines.

The recovery in stocks came as bond markets also bounced back from a selloff. U.S. 10-year Treasury yields came within striking distance of the key psychological barrier of 3 percent on Monday, a level in the past that has triggered market spasms.

“The U.S. yield spike story has been a theme for the last 24 hours but we don’t expect a sharp surge as the U.S. continues to be in a late economic cycle,” said Christin Tuxen, a currency strategist at Danske Bank.

Earnings meanwhile, especially from the tech sector, were in focus after a turbulent few months for leading U.S. tech firms.

Google parent Alphabet was up slightly in volatile after-hours trading on Monday after the tech giant reported a 73 percent jump in profits in the first quarter.

Chipmaker AMS reported first-quarter sales towards the lower end of its guidance range on Monday and warned of a downturn owing to weaker orders from one of its main customers.

AMS did not name the customer, but the Austrian company is a big supplier to Apple, making components for the iPhone.

SAP SAP.G, Europe’s largest tech company by stock market valuation, announced upbeat results in the seasonally tough first quarter.

Of around 18 percent of the companies in the S&P 500 that have already reported, 78.2 percent beat consensus estimates.

OIL SURGE

Brent crude oil rose for a sixth day to hit its highest since November 2014 at over $75 a barrel LCOc1, buoyed by expectations that supplies will tighten just as demand reaches record levels.

Brent’s six-day rising streak is the longest such string of gains since December, with prices up more than 20 percent from 2018 depths plumbed in February.

U.S. West Texas Intermediate crude futures CLc1 were at $69.15 a barrel, up 0.7 percent. On Thursday, WTI rose to its strongest since Nov. 28, 2014 at $69.56.

A rally in oil and crude prices and renewed focus on the inflation outlook has added to upward pressure on bond yields recently.

“It is this move higher in crude oil prices, along with the rise in demand, that is helping fuel the recent rise in yields as well as the positive tone for equity markets,” said Michael Hewson, chief market analyst at CMC Markets in London.

FTSE International7398.87
.FTSEFT-SE INTERNATIONAL
+30.70(+0.42%)
chartsgen2?symbols= - Google helps stock markets recover, oil stretches above $75
“However if it continues too far we could start to see it act as a drag on equity markets, if prices along with yields start to move even higher.”

DOLLAR SHADE FIRMER

The fallout from rising U.S. bond yields, which have helped lift U.S. financial stocks, was also felt in currency markets.

The euro fell to a two-month low as concerns that rising U.S. Treasury yields would push the currency to break below a range it has been stuck within most of this year, prompting hedge funds to unwind some of their record long bets.

It stabilized around $1.22, having plumbed to a low of $1.2185 in Asia, its lowest since March 1.

The dollar set a two-month high of 108.87 yen and was holding near those levels.

In commodities, aluminum extended losses after tumbling 7 percent on Monday, its biggest one-day drop in eight years.

 Three-month aluminum on the London Metal Exchange CMAL3 last stood at $2,255 per tonne after the United States extended the deadline for sanctions on Russian aluminum producer Rusal.

Source

Related ItemsAppleAsiabondcurrencyeconomiceuroEuropeFTSEfuturesGermanyhedge fundsinflationJapanlossesmarketmarketsrisesalesstabilizedstock marketstock marketstradingU.S. bondUnited Statesvolatileworld

Leave a Reply

Cancel reply

Your email address will not be published. Required fields are marked *

Anti-spam: complete the taskWordPress CAPTCHA


news
24/04/2018
админ
Related ItemsAppleAsiabondcurrencyeconomiceuroEuropeFTSEfuturesGermanyhedge fundsinflationJapanlossesmarketmarketsrisesalesstabilizedstock marketstock marketstradingU.S. bondUnited Statesvolatileworld

More in news

273116ff712463a8fe797bc26d4bddd2 400x240 - Major policy change for the FED

Major policy change for the FED

админ30/08/2020
Read More
5ecd652efa96beb5e9daab8a81713e20 400x240 - Powell expected to preview Fed’s policy framework

Powell expected to preview Fed’s policy framework

админ27/08/2020
Read More
1cfd53e4dc84605be8f34b32e1fc08ff 400x208 - European markets look defensive

European markets look defensive

админ26/08/2020
Read More
Scroll for more
Tap

Last news

  • 273116ff712463a8fe797bc26d4bddd2 95x60 - Major policy change for the FED
    Major policy change for the FED
    news30/08/2020
  • 5ecd652efa96beb5e9daab8a81713e20 95x60 - Powell expected to preview Fed’s policy framework
    Powell expected to preview Fed’s policy framework
    news27/08/2020
  • 1cfd53e4dc84605be8f34b32e1fc08ff 95x60 - European markets look defensive
    European markets look defensive
    news26/08/2020
  • cbda506728f805be55e3597fd478b623 95x60 - Another record-setting session for U.S. stocks futures
    Another record-setting session for U.S. stocks futures
    news25/08/2020
  • 3c51d052540d35f9b8497fc0b1942d58 95x60 - $50M worth of cryptos or more left China
    $50M worth of cryptos or more left China
    news23/08/2020

Tags

american Asia Bitcoin China cryptocurrency currency Dollar dollar index economic Economists EUR euro Fed Federal Reserve forex futures GBP GDP Germany Index inflation interest rate interest rates Japan losses lost market markets monetary policy Oil price prices rate rates retail rise risk sales trade trade war trading Trump UK United States US

Copyright © 2019 Forex News 24, all rights reserved.

Dollar Bulls Look for Support Signals
Worrying signs China is moving backward on reforms, warns U.S. official