NEW YORK, Sept 30 ― Investors sought to stanch the bleeding yesterday after world stock markets suffered their worst rout since January and US and European borrowing costs raced to their highest in months.
Stock indices in the United States and Europe staged a partial recovery after a heavy sell-off in tech stocks on Tuesday had consigned Wall Street to its steepest drop since mid-July.
The Dow Jones Industrial Average rose 240.91 points, or 0.7 per cent, to 34,540.9, the S&P 500 gained 27.86 points, or 0.64 per cent, to 4,380.49 and the Nasdaq Composite added 53.10 points, or 0.37 per cent, to 14,599.78.
The pan-European STOXX 600 index rose 0.6 per cent, with investors looking past a 2.2 per cent fall in the previous session.
MSCI's gauge of stocks across the globe gained 0.08 per cent.
Declines in tech stocks earlier in the week created opportunities for investors looking for value, analysts said.
“Bargain hunters have stepped into the fold today as they have swooped in to snap up relatively cheap stocks,” said David Madden, market analyst at Equiti Capital.
The global benchmarks for borrowing costs ― the yields on US and German government bonds ― also edged lower after their spikes had helped fuel the volatility.
“We have seen bond yields retrace today but the chatter about tapering is likely to resurface in the near term,” said Madden.
Benchmark 10-year notes last fell 3/32 in price to yield 1.5444 per cent, from 1.536 per cent late on Tuesday.
Those Treasury yields have jumped roughly 20 basis points over the last week and are set for their biggest monthly jump since March.
“The question that will come in the next 10 days is will the US Treasury yield keep pushing above 1.5 per cent,” said Societe Generale strategist Kenneth Broux.
German and British 10-year bond yields are set for the biggest monthly rise since February ― gilt yields have soared almost 40 basis points this month to 1 per cent.
Broux said the question for October and the rest of the year would be whether the inflation pressures that central banks train their focus on start to abate. “The 1.5 per cent level (on US Treasuries) is really pivotal,” he said.
The dollar rallied to a one-year high against rival currencies. The greenback is on course for its best year since 2015 just as doubts re-emerge about the global recovery from the Covid pandemic and Washington is bogged down in debt ceiling talks that could lead to a government shutdown. China is also grappling with a power crunch and property sector worries that have hit its economy.
The dollar index rose 0.661 per cent, with the euro down 0.67 per cent to US$1.1603 (RM4.85).
Gold fell to its lowest in seven weeks yesterday as the dollar advanced.
Spot gold dropped 0.5 per cent to US$1,725.26 an ounce. US gold futures settled 0.8 per cent lower at US$1,722.9.
Overnight Asia-Pacific shares had managed to restrict falls to 1.2 per cent. Not including Japan, the region was heading for a 9.4 per cent decline for the third quarter, its worst quarterly performance since the first three months of 2020, when global markets were roiled by the initial spread of Covid-19.
China's worsening power crunch pushed investors out of Chinese stocks vulnerable to factory shutdowns, including chemicals and steelmaking, even as the country's economic planning agency sought to reassure residents and businesses.
Debt saddled property giant China Evergrande's shares did leap 15 per cent though, after it said it planned to sell a 9.99 billion yuan stake in Shengjing Bank .
But investors are still waiting to see whether the developer makes some now-overdue bond payments and rating firm S&P Global said another major property firm, Fantasia, was also at growing risk of default.
In commodity markets, oil prices dropped, having broken through US$80 a barrel for the first time in nearly three years the day before.
US crude oil futures settled at US$74.83 per barrel, down 0.6 per cent. Brent crude futures settled at US$78.64 per barrel, also down 0.6 per cent. ― Reuters
Source: Malay Mail
A word from our sponsor:
Need Help With Your Personal Finance / Money Issue or need a coach to help you structure or just want to learn the financial skill to self manage your financial matters and retirement. iLearnFromCloud.com
Need to solve a problem quickly, now you can solve it by learning the art of problem solving Art Of Problem Solving
Feeling hungry. Latest food news from Best Restaurant To Eat Malaysian Food and Travel Blog
Memory loss. Need to organize better. Solve problem fast with Free Mind Mapping Software Mind Mapping 101
Need A Customized System Development for your business or Going Paperless XPERT TECHNOLOGIES - Empowering The Paperless Economy
No comments:
Post a Comment