Oil Pullback Offers Relief as Global Stocks Rise Despite High Yields
Markets found a little breathing room Friday, though oil remained above $100 a barrel and borrowing costs stayed near multi-year highs. Global stocks advance...
Markets found a little breathing room Friday, though oil remained above $100 a barrel and borrowing costs stayed near multi-year highs. Global stocks advanced after U.S. President Donald Trump said the United States would not attack Iran before next month’s midterm elections, easing some immediate concern about energy supplies.
Brent crude fell about 0.75% to $103 a barrel, giving back part of a surge of more than 4% in the previous session. Another market report put Brent at $104.48, up about 0.2% on the day, reflecting differing snapshots of trading.
Stocks edge higher
European shares gained 1.25%, while the S&P 500 rose 0.33% and the Nasdaq Composite added 0.4%. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.56%. Japan’s Nikkei ended little changed.
Investors remained wary. Technology companies were preparing another wave of fundraising, while government bond yields in major economies hovered near multi-year highs. Telecom shares fell in the United States and Europe after SpaceX’s acquisition of low-band spectrum raised concerns about competition from satellite-based mobile services.
U.S. Treasury yields had ticked higher in one account of Friday’s trading. Another report said the 10-year yield eased to 5.22% after a 30-year bond auction drew solid demand, helping support buying in Asian shares. Technology stocks faced selling pressure amid renewed doubts about the artificial-intelligence boom and elevated borrowing costs.
Investors watch earnings and Iran
Trump also said Washington and Tehran were holding “productive” discussions to end the war, according to one market report. The same account said the United States had prepared plans for three days of targeted strikes against Iranian energy infrastructure and weapons stockpiles, underscoring the uncertainty around the conflict and oil supply.
Investors are also looking ahead to the start of the third-quarter earnings season next week, when several Wall Street banks are scheduled to report. Doug Beath, global equity strategist at Wells Fargo Investment Institute, said the S&P 500’s relatively narrow market participation suggests investors believe large technology stocks are better positioned.
Source: reuters.com
