Shares hit record highs as US jobless claims plunge

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  • Add the closing price of oil
  • European stocks approach record high as data improves
  • Dollar hits 15-month high against the yen, 4-month high against the euro
  • Oil climbs 2% per barrel
  • All eyes on Friday’s payroll data

NEW YORK, July 1 (Reuters) – Global stock markets rose on Thursday on strong European and US stocks, with stocks pushing back a rapid re-acceleration of coronavirus cases and oil and the dollar extending their first-half rallies.

On Wall Street, the S&P 500 index kicked off the second half of the year at an all-time high, with data showing fewer than expected weekly jobless claims, while energy stocks were supported by a surge in prices of the oil. Read more

London (.FTSE), Frankfurt (.GDAXI), Paris (.FCHI) and Milan (.FTMIB) overcame a mid-morning swing to keep the pan-European STOXX 600 at an all-time high.

In a session in Asia thinned by a Hong Kong holiday, the Japanese Nikkei (.N225) fell 0.3% and the yen hit a 15-month low, sources in Tokyo saying COVID restrictions -19 were likely to be extended. Read more

Oil prices rose about 2% on indications that OPEC + producers may increase production more slowly than expected in the coming months, as rising global demand for fuel continues to tighten l ‘offer. Read more

The dollar index hit three-month highs ahead of Friday’s US jobs report, which may offer clues as to when the Federal Reserve will start cutting stimulus.

“Markets digest improving economic data and rising inflation, scrutinizing central bank communications for clues regarding the timing, process and extent of policy normalization,” said Ben Randl, senior analyst at Bank of America Merrill Lynch.

US government bond prices were lower, with the benchmark 10-year yield falling 1.4696% for the last time. The benchmark 10-year German Bund yield rose one basis point on the day to -0.2%. French, Spanish and Italian 10-year yields increased similarly,,.

Gold rose on Thursday alongside a drop in the dollar and Treasury yields, reducing some of the precious metal’s losses last month.

The MSCI gauge of equities around the world (.MIWD00000PUS) rose 1.07 points, or 0.15%, and the pan-European STOXX 600 index (.STOXX) rose 0.62%. The largest MSCI index of Asia-Pacific stocks outside of Japan (.MIAPJ0000PUS) was last 0.62% lower.

TENSIONS IN TAIWAN

In China overnight, the stock markets applauded the Communist Party’s centenary with a slight uptick, but a nationalist speech by President Xi Jinping in Tiananmen Square did little to appease geopolitical nerves, and the yuan weakened.

Xi vowed to complete “reunification” with self-governing Taiwan and “crush” any attempt at formal independence.

Slowing vaccination rates in Asia and extending restrictions to curb the spread of the virus – along with a regulatory crackdown on Chinese tech giants – have lagged regional markets this year.

The MSCI Ex-Japan Index closed the first half with a 5.8% gain versus the rise in global equities (.MIWD00000PUS) of 11.4% and a gain of 14.4% for the S&P 500, which had recorded his fifth consecutive record in closed on S1 Wednesday.

However, it was Friday’s US wages that traders believed could shake markets from a sleep that has locked currencies in some of their tightest trading ranges in decades. The state’s initial jobless claims fell from 51,000 to 364,000 seasonally adjusted for the week ending June 26, the Labor Department said Thursday, although they are not a reliable guide to indicators more Friday broads.

June was the best month for the dollar since Donald Trump was elected President of the United States in November 2016, said Lee Hardman, currency analyst at MUFG.

“The key trigger,” he said, “was the hawkish shift in Fed policy. The more hawkish guidance has made market participants less confident that the Fed will maintain loose policy in the years to come. to come up.”

The Dow Jones Industrial Average (.DJI) rose 94.32 points, or 0.27%, the S&P 500 (.SPX) gained 18.85 points, or 0.44%, and the Nasdaq Composite (.IXIC ) added 0.65 points, or 0%, to 14,504.60.

The US dollar index, which measures the greenback against a basket of six major currencies, rose 0.148 points, or 0.16%, with the euro up 0.06% to $ 1.1862.

Brent crude gained $ 1.22, or 1.63%, to $ 75.84 a barrel. U.S. crude gained $ 1.76, or 2.4%, to $ 75.18 a barrel.

Spot gold prices rose $ 3.3126, or 0.19%, to $ 1,773.12 an ounce.

Reporting by Elizabeth Dilts Marshall in New York and Marc Jones in London; edited by Jonathan Oatis

Our standards: Thomson Reuters Trust Principles.

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