Wall Street rallies in sea of green
Wall Street gains, Nasdaq up ~0.5%
Real estate leads S&P 500 sectors, comms srvs slips
STOXX 600 up ~1.0%
Weekly U.S. jobless claims rise modestly
Bitcoin, crude, gold up; dollar weakens
10-year Treasury up at 3.57%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
WALL STREET RALLIES IN SEA OF GREEN (1015 EDT/1415 GMT)
Wall Street is all systems go on Thursday after jobless claims show layoffs remain low and the labor market is extremely tight, suggesting the U.S. economy can withstand high interest rates.
Real estate .SPLRCR led 10 of all 11 the S&P 500 sectors higher, as the beaten-down sector bounces almost 6% off five-month lows hit last Friday. Communications services .SPLSRL was the sole declining sector.
Semiconductors .SOX, struggling through its worst downturn in the last 13 years, also rose as did small caps .RUT and Dow transports .DJT. Value .IVX outpaced gains in growth stocks .IGX in a market awash in green.
But the market may be discounting the harm from tighter credit markets as the Fed keeps monetary policy tight.
While difficult to assess how long the banking crisis will linger, elevated funding costs and tighter lending standards ahead present the potential for a serious shock, says
Torsten Slok, chief economist at Apollo Global Management.
"The bottom line is that if the ongoing banking crisis results in tighter bank lending standards over the coming quarters, it increases the risks of a harder landing," Slok said in a note.
Here is a snapshot of market prices in early trading:
(Herbert Lash)
*****
WAITING FOR A CHINA REBOUND? HOW ABOUT GOLD? (GMT 1325)
Though investors have put their hopes in the recovery of industrial activities in China, global concerns might make them look for a haven in precious metals instead.
Accordingto Berenberg analysts, early signs of the long-awaited China rebound indicate it "will not be particularly stellar, offering only modest growth." Thus, rather than waiting for Godot from the East, investors could turn their attention to "well supported" gold, for instance.
As the banking sector has been shaken by collapses and overall uncertainty, and global GDP is likely to slow in Q2, offsetting any potential gains from China, and gold might get a boost from a possibly more dovish Fed, Berenberg says.
"In the near term, we believe that an overweight precious metals strategy is merited due to ongoing geopolitical concerns and risks in the banking sector."
This being the case, the broker recommends gold-oriented stocks in its analysis, such as Greatland Gold GGPL.L, Endeavour Mining EDV.L and Pan African Resources PAFR.L.
While Berenberg also highlights Boliden BOL.ST, which is mostly copper-focused, as a "top-quality operator," it notes that the Swedish miner should generate 14% of its 2023 revenue from gold.
(Boleslaw Lasocki)
****
WATCH THE TAPE, THE TWO-YEAR, AND NOT THE FED (0915 EDT/1115 GMT)
Yields on two-year Treasury note rose after jobless claims remained low on Thursday as tighter credit conditions have yet to show a material impact on the strong labor market.
The jump in yields suggests the market sees the Federal Reserve still hiking rates to slow growth when policymakers meet in May.
But investors should follow the markets, not the Fed for clues on when the central bank's rate hikes will end, says Richard Saperstein, chief investment officer at Treasury Partners in New York.
It may be possible that the Fed raises rates by another 25 basis points when policymakers end their meeting on May 3, as many in the market believe, Saperstein says.
But the two-year note's yield has moved below the fed funds rate, which historically signals that the Fed is near the end of its rate hiking cycle and the fed funds rate is near its peak.
Meanwhile, futures pointed to a higher open after initial claims for state unemployment benefits increased 7,000 to a seasonally adjusted 198,000for the week ended March 25, the Labor Department said on Thursday. Economists polled by Reuters had forecast 196,000 claims for the latest week.
(Herbert Lash)
*****
FOR THURSDAY'S LIVE MARKETS POSTS PRIOR TO 0900 EDT/1300 GMT - CLICK HERE
Alibaba trades at discount to peershttps://tmsnrt.rs/42MlWTZ
eu openhttps://tmsnrt.rs/42Qqngm
Early market snapshothttps://tmsnrt.rs/3JZACqf
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
