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New York - Global stocks and crude oil rose on Tuesday as investors, eager to see if the U.S. Federal Reserve moves to aid a sputtering U.S economy later this week, shrugged off Italy’s credit downgrade and other sour news.
Risk aversion eased a bit, even as the outlook remained gloomy, with German investor sentiment dropping to its lowest level in nearly three years and data showing US housing starts down more than expected in August.
Brent crude bounced back from heavy losses in the previous session as worries over the global economy were seen to have been factored into current prices.
North Sea Brent rose $2.18 to $111.32 a barrel.
The FTSEurofirst 300 index of top European shares provisionally ended 1.9% higher, with volumes representing only about 70% of the index’s 90-day daily average.
Global equity markets gained, as did Wall Street stocks after toying with break-even after the open. MSCI’s all-country world equity index rose 1.2%, while the pan-European FTSEurofirst 300 gained nearly 2%.
Despite a dismal economic outlook, investors were caught between equity valuations that are very attractive, when compared to the yield on government debt, currently trading at below 2%.
The Dow Jones industrial average jumped 1.12%, Standard & Poor’s 500 Index was up 1.25% and the Nasdaq Composite Index put on 1.01%. The euro traded near break-even against the U.S. dollar as Italy’s debt downgrade and uncertainty about Greece’s ability to avoid default weighed on the single currency.
The euro was last up 0.1% at $1.36696. US Treasuries prices slipped as stock market gains and prospective progress in Greek debt talks damped demand for safe-haven US government debt.
The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 1.96%.
Risk aversion eased a bit, even as the outlook remained gloomy, with German investor sentiment dropping to its lowest level in nearly three years and data showing US housing starts down more than expected in August.
Brent crude bounced back from heavy losses in the previous session as worries over the global economy were seen to have been factored into current prices.
North Sea Brent rose $2.18 to $111.32 a barrel.
European stocks ended higher on Tuesday, led by buoyant defensive shares, but
lacklustre trading volumes and nagging fears of contagion from the Greek debt
turmoil signalled the rebound could be short-lived.
The FTSEurofirst 300 index of top European shares provisionally ended 1.9% higher, with volumes representing only about 70% of the index’s 90-day daily average.
Global equity markets gained, as did Wall Street stocks after toying with break-even after the open. MSCI’s all-country world equity index rose 1.2%, while the pan-European FTSEurofirst 300 gained nearly 2%.
Despite a dismal economic outlook, investors were caught between equity valuations that are very attractive, when compared to the yield on government debt, currently trading at below 2%.
The Dow Jones industrial average jumped 1.12%, Standard & Poor’s 500 Index was up 1.25% and the Nasdaq Composite Index put on 1.01%. The euro traded near break-even against the U.S. dollar as Italy’s debt downgrade and uncertainty about Greece’s ability to avoid default weighed on the single currency.
The euro was last up 0.1% at $1.36696. US Treasuries prices slipped as stock market gains and prospective progress in Greek debt talks damped demand for safe-haven US government debt.
The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 1.96%.
