U.S. stocks rise, dollar falls, as stimulus hopes revive

In this news, we discuss the U.S. stocks rise, dollar falls, as stimulus hopes revive.

NEW YORK (Reuters) – U.S. stocks rallied on Tuesday, fueled by investor optimism that a deal would be reached in Washington to provide further relief measures and help the U.S. economy withstand the impact of the coronavirus pandemic.

Gold rose slightly and the dollar weakened as hopes of a US coronavirus aid package ahead of the presidential election heightened bullion’s appeal as a hedge against inflation.

President Donald Trump pushed for a comprehensive COVID-19 relief plan on Tuesday, saying he would accept a deal worth more than $ 2.2 trillion despite opposition to large spending measures among his fellow Republicans in the US Senate.

Trump spoke as talks between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin neared Tuesday’s deadline to reach a bipartisan deal that could pass Congress before Election Day on November 3.

“I think there is still this belief that the recovery is going to happen,” said Ed Moya, senior market analyst at OANDA, adding he remained skeptical.

The Dow Jones Industrial Average .DJI rose 249.70 points, or 0.89%, to 28,445.12 and the S&P 500 .SPX rose 33.38 points, or 0.97%, to 3,460.30 . The Nasdaq Composite .IXIC rose 98.53 points, or 0.86%, to 11,577.41.

Shares of Procter & Gamble Co were up 2%, as coronavirus-linked home cleaning pushed sales of the consumer goods giant’s home care products to 30% higher.

European stocks fell as concerns over coronavirus brakes and Brexit countered the optimism generated by solid earnings, including from Swiss bank UBS.

Italy, Spain and Britain have imposed brakes to limit the spread of new coronavirus cases that threaten to derail a nascent economic recovery. The latest downturns in Ireland will cause GDP to drop 3.5% this year, Finance Minister Paschal Donohoe said.

The pan-regional STOXX 600 .STOXX recovered about 35% from a pandemic panic plunge in March, but is struggling to reach pre-crisis levels, leveling off as the second wave of the disease approaches. On Tuesday, the index closed down 0.35%.

The European Union and Britain have struggled to make progress on a trade deal to avoid a disruptive final that is fast approaching the five-year drama of Britain’s departure from the EU.

The pound sterling rose against the dollar but fell against the strong euro, with investors still looking for clues as to the likelihood that Britain will strike a trade deal with the European Union by the end of the year. ‘year.

The British government has said it sees no reason to resume talks with the European Union unless there is a fundamental change in approach.

The pound was up 0.2% to $ 1.2968 = D3, while against the euro it was down 0.4% to 91.26 pence EURGBP = D3, after slipping earlier to a two week low at 91.48 pence.

The dollar fell, but moves were moderate as investors waited for the outcome of stimulus negotiations.

The dollar = USD index fell 0.31%, putting it on track for a second day of decline.

XAU = spot gold rose 0.4% to $ 1,912.71 an ounce. US GCv1 gold futures were up 0.2% to $ 1,915.40.

Oil edged up on stimulus hopes, but the threat to demand from increasing coronavirus cases around the world and rising Libyan production kept prices from rising.

Brent LCOc1 futures stabilized up 1.15% at $ 43.11 per barrel. West Texas Intermediate (WTI) US crude CLc1 futures stabilized 1.54% at $ 41.46 per barrel.

Overnight, the largest MSCI Asia-Pacific stock index outside of Japan .MIAPJ0000PUS fell 0.2%, while the Australian .AXJO and Japanese .N225 markets fell.

Editing by Jonathan Oatis and Nick Zieminski

Original © Thomson Reuters

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