U.S. Stocks Climb to Six-Week High While Oil Sinks: Markets Wrap
A Wall Street street sign hangs in front of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

U.S. Stocks Climb to Six-Week High While Oil Sinks: Markets Wrap

(Bloomberg) -- Stocks advanced as major economies moved toward reopening and policy makers in Japan and Europe sought to reduce pressure on credit markets. The dollar weakened and oil took another dive.

The S&P 500 Index climbed to its highest close since March 10, led by financial companies after a surprisingly good earnings report from Deutsche Bank and amid continued talk of easing lockdowns. The Stoxx Europe 600 Index also rose after Covid-19 deaths slowed in Spain, Italy and France and the countries signaled tentative moves to reopen their economies.

The misery for West Texas oil continued and futures in New York traded near $13 a barrel amid a glut of crude. Treasury yields rose amid a report that European regulators will provide banks with a fourth round of capital relief and as the Bank of Japan ratcheted up its stimulus measures with plans to buy as many government bonds as needed.

U.S. Stocks Climb to Six-Week High While Oil Sinks: Markets Wrap

With the S&P 500 Index up more than 25% since its lows in March but still down more than 10% this year, investors are waiting on a slew of corporate earnings this week and forecasts on what’s to come, with reports due from Amazon.com Inc., Barclays Plc and Samsung Electronics Co. For now, traders are focused on the positive, with all 11 of the S&P 500’s major subgroups gaining on the day.

“There’s a glimmer of light today in some of the breadth coming back to the market,” said Lindsey Bell, chief investment strategist at Ally Invest. “It could be a sign investors feel more confident that we’re getting out of the woods.”

Stocks held gains throughout the day amid good news on the fight against the pandemic. A coronavirus vaccine could be available as early as this year, according to a coalition funding nine projects. U.S. cases rose at the slowest pace this month, while the U.K. reported the lowest daily increase in deaths since March. New York recorded 337 deaths, down sharply from daily peaks earlier this month.

U.S. Stocks Climb to Six-Week High While Oil Sinks: Markets Wrap

These are the main moves in markets:

Stocks

  • The S&P 500 advanced 1.4% at the close of trade in New York.
  • The Stoxx Europe 600 Index climbed 1.8%.
  • The MSCI Asia Pacific Index advanced 2%.

Currencies

  • The Bloomberg Dollar Spot Index fell 0.4%.
  • The euro rose 0.1% to $1.0832.
  • The Japanese yen appreciated 0.3% to 107.24 per dollar.

Bonds

  • The yield on 10-year Treasuries increased six basis points to 0.66%.
  • Germany’s 10-year yield climbed two basis points to -0.45%.
  • Britain’s 10-year yield advanced one basis point to 0.301%.

Commodities

  • The Bloomberg Commodity Index decreased 1.1%.
  • West Texas Intermediate crude dropped 23% to $13.11 a barrel.
  • Gold fell 0.8% to $1,716.15 an ounce.

©2020 Bloomberg L.P.

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