In this news, we discuss the Stocks rise on strong earnings; IMF strengthens sentiment
NEW YORK (Reuters) – Global stocks rose on Tuesday, helped by strong corporate earnings in the United States and Europe, as sentiment was boosted by the International Monetary Fund which raised its forecast for global growth in 2021 .
The main Wall Street indices have all risen. The impressive results of a large number of companies, including General Electric and Johnson & Johnson, have pushed the S&P 500 to an all time high.
At 2:41 p.m. ET, the Dow Jones Industrial Average rose 33.43 points, or 0.11%, to 30,993.43, the S&P 500 was up 2.15 points, or 0.06%, to 3,857.51 and the Nasdaq Composite added 19.79 points, or 0.15%, to 13,655.78.
European stocks also rose, avoiding political upheaval in Italy, with strong earnings from wealth manager UBS and auto parts maker Autoliv adding to a string of bullish company updates.
The pan-European STOXX 600 index closed 0.6% higher, with a rally of automakers, industrials and SAP helping the German DAX outperform.
Europe’s FTSEurofirst 300 index added 0.64% to 1,573.47.
The IMF raised its forecast for global economic growth in 2021 and said the slowdown triggered by the coronavirus in 2020 would be almost a percentage point less severe than expected.
Italy’s FTSE MIB rose 1.2% after Prime Minister Giuseppe Conte handed in his resignation to the head of state, hoping he would have the opportunity to form a new coalition and rebuild his parliamentary majority.
The MSCI World Stock Index, which tracks shares of 49 countries, fell 1.06 points, or 0.16 percent to 667.02.
After a multi-month buy-all rally supported by pandemic money-printing stimulus plans, near-zero interest rates and the start of COVID-19 vaccination programs, some investors fear the markets are close to the territory of the “bubble”.
They are signaling the surge in prices of assets such as bitcoin or, on Monday, the surge in the stock of video game retailer Gamestop.
“There is room for some consolidation,” said François Savary, investment director at Prime Partners, Swiss wealth manager.
Investors watched as the Federal Reserve kick off its two-day policy meeting.
“Investors don’t expect the Fed to give a reason to believe they are getting any closer to the question of when to consider cutting QE, but nervousness is brewing on Wall Street,” said Edward Moya , senior market analyst at OANDA in New York. .
Rising coronavirus cases and uncertainty about the timing and extent of fiscal stimulus have also tempered sentiment.
The disagreements have meant months of indecision in the United States, where new cases exceed 175,000 a day and millions of people are out of work.
Democrats in the US Senate will act on their own to approve a new round of stimulus measures if Republicans do not back the measure, Majority Leader Chuck Schumer said.
US Treasury yields have been closely mixed in volatile trading, after hitting three-week lows on the long end of the curve as investors remain cautious about the size of a US stimulus package and how slow global deployment of coronavirus vaccines.
The benchmark 10-year notes last fell 1/32 of their price to 1.0414%, down from 1.04% late on Monday.
The dollar index, which tracks the greenback against a basket of six currencies, fell 0.226 points, or 0.25%, to 90.165.
The largest MSCI index of Asia-Pacific stocks outside of Japan fell 11.47 points or 1.58% in Asia overnight. South Korea and Hong Kong dominated the losers, each losing more than 2%. The selloff also sent Japanese stocks down 1% and Chinese blue chips down 2%, their biggest one-day loss since September 9.
All of them had reached landmark highs earlier this month.
US crude oil futures were down 16 cents or 0.30% at $ 52.61 per barrel. Brent futures were at $ 55.91 per barrel, up 3 cents or 0.05%.
Reporting by Matt Scuffham; Edited by Dan Grebler / Mark Heinrich
Original © Thomson Reuters