Skip to content
More from
Bloomberg
Fixed Income
relates to Economy Spiraling, Vexed Central Banks, Rich Get Richer: Eco Day
relates to Philippine Banks’ Pandemic Rebound Quicker Than Asian Crisis Era relates to Top Fund Manager Is Bullish on Riskier India Credits on Recovery relates to Yellen to Affirm Commitment to Market-Determined Dollar: WSJ relates to Emerging Markets Tested by Rising Dollar Ahead of Biden’s Return relates to Saudi Arabia Provides Stimulus for Listed Companies in IPO Push relates to The Rich Are Minting Money in the Pandemic Like Never Before relates to Saudi Arabia’s Top Bank Follows UAE Rivals to Dollar Bond Market relates to Biden’s Stimulus Hopes May Depend on ‘Reconciliation’ relates to There’s a Global Wall of Cash Primed to Snap Up U.S. Treasuries relates to Economy Spiraling, Vexed Central Banks, Rich Get Richer: Eco Day
relates to Philippine Banks’ Pandemic Rebound Quicker Than Asian Crisis Era relates to Top Fund Manager Is Bullish on Riskier India Credits on Recovery relates to Yellen to Affirm Commitment to Market-Determined Dollar: WSJ relates to Emerging Markets Tested by Rising Dollar Ahead of Biden’s Return relates to Saudi Arabia Provides Stimulus for Listed Companies in IPO Push relates to The Rich Are Minting Money in the Pandemic Like Never Before relates to Saudi Arabia’s Top Bank Follows UAE Rivals to Dollar Bond Market relates to Biden’s Stimulus Hopes May Depend on ‘Reconciliation’ relates to There’s a Global Wall of Cash Primed to Snap Up U.S. Treasuries relates to Economy Spiraling, Vexed Central Banks, Rich Get Richer: Eco Day
relates to Philippine Banks’ Pandemic Rebound Quicker Than Asian Crisis Era relates to Top Fund Manager Is Bullish on Riskier India Credits on Recovery relates to Yellen to Affirm Commitment to Market-Determined Dollar: WSJ relates to Emerging Markets Tested by Rising Dollar Ahead of Biden’s Return relates to Saudi Arabia Provides Stimulus for Listed Companies in IPO Push relates to The Rich Are Minting Money in the Pandemic Like Never Before relates to Saudi Arabia’s Top Bank Follows UAE Rivals to Dollar Bond Market relates to Biden’s Stimulus Hopes May Depend on ‘Reconciliation’ relates to There’s a Global Wall of Cash Primed to Snap Up U.S. Treasuries
Markets

Stocks Rise for Second Day; Treasury Yields Drop: Markets Wrap

Updated on

Stocks Rise for Second Day; Treasury Yields Drop: Markets Wrap

  • U.S. 10-year note yields post biggest decrease in five weeks
  • Oil drops even after report shows shrinking domestic supplies

WATCH: Federal Reserve rate actions have had a coercive affect on the markets and forced investors to move into risk assets, according to Oaktree Capital Group co-founder Howard Marks.

Stocks rose and benchmark Treasury yields retreated for a second day amid optimism the economy will continue to benefit from government support.

Technology shares led gains, with the Nasdaq 100 outperforming the benchmark S&P 500. Intel Corp. jumped 7% after the chipmaker named a new chief executive. Treasury received strong demand for a second consecutive day at a government debt sale, helping to send yields down from the highest levels since March.

“Investors continue to focus on growing expectations for increased fiscal spending and promising economic prospects as the vaccine rolls out later this year,” said Ryan Nauman, market strategist at Informa Financial Intelligence’s Zephyr. “It’s all about resiliency here right now and equity markets continue to overlook and not be phased by all the chaos that’s out there.”

In Washington, the House of Representatives is voting to impeach President Donald Trump for a second time. A Senate trial for Trump won’t likely get under way before his term ends on Jan. 20.

Rise in benchmark U.S. Treasury yields has come amid a jump in term premium

In Europe, European Central Bank council member Francois Villeroy de Galhau said the ECB will keep an easy stance for as long as needed, and U.S. investors took comfort from remarks by two Federal Reserve officials that pushed back on the possibility of tapering bond purchases anytime soon.

“Coordinated comments from Fed governors” are helping to deflate bond yields, said Deutsche Bank AG strategists including Jim Reid in a note to clients. “We’ve only had seven business days this year and we’ve already had a full 360-degree tapering debate played out by the Fed.”

Europe’s Stoxx 600 was flat, with losses in banks and travel shares outweighing M&A announcements. Among the day’s winners, French grocer Carrefour SA rallied after Alimentation Couche-Tard Inc., the convenience-store giant that owns the Circle K chain, said it’s exploring a transaction.

In Japan, the Nikkei 225 outperformed, reaching a record in dollar terms. Equities also ticked up in South Korea, while Hong Kong shares were flat.

Oil fell as a stronger dollar and rising refined products supplies offset shrinking U.S. crude supplies, capping the price under a key technical indicator.

Here are some key events coming up:

  • JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. are among firms due to report earnings.
  • U.S. President-elect Joe Biden plans to lay out proposals for fiscal support on Thursday.
  • Federal Reserve Chairman Jerome Powell takes part in a webinar on Thursday.
  • U.S. initial jobless claims data are due Thursday.
  • U.S. retail sales, industrial production, business inventories and consumer sentiment figures are due Friday.

These are some of the main moves in markets:

Stocks

  • The S&P 500 Index climbed 0.3% to 3,809.84 as of 4:02 p.m. New York time.
  • The Dow Jones Industrial Average increased 0.1% to 31,060.47.
  • The Nasdaq Composite Index jumped 0.5% to 13,128.95.
  • The Stoxx Europe 600 Index gained 0.1% to 409.07.
  • The MSCI All-Country World Index rose 0.3% to 661.44.

Currencies

  • The Bloomberg Dollar Spot Index gained 0.2% to 1,122.79.
  • The euro decreased 0.4% to $1.2157.
  • The British pound fell 0.3% to $1.3634.
  • The Japanese yen weakened 0.1% to 103.87 per dollar.

Bonds

  • The yield on 10-year Treasuries dipped four basis points to 1.09%, the biggest decrease in five weeks.
  • Germany’s 10-year yield decreased five basis points to -0.52%, the largest dip in seven months.
  • Britain’s 10-year yield fell five basis points to 0.307%, the first retreat in more than a week and the biggest drop in more than a month.

Commodities

  • West Texas Intermediate crude fell 0.6% to $52.88 a barrel, the first retreat in more than a week and the largest fall in a week.
  • Silver weakened 1.5% to $25.25 per ounce.