Wall Street roars to record peak on rosy earnings, dollar wilts
* Dow Jones Index, S&P 500 hit record highs
* Dollar sluggish at 1-month low on bets of a dovish Fed
* Pan-European STOXX 600 index also at all-time high
* China shares bounce, still down sharply on week
By Koh Gui Qing
NEW YORK, July 29 (Reuters) - U.S. shares bounded to record highs on Thursday helped by strong company earnings and solid economic growth data, though the Federal Reserve's message earlier this week that it is in no hurry to taper stimulus pinned the dollar at a one-month low.
Following a spate of strong corporate earnings reports from Ford Motor Co F.N to KFC owner Yum Brands Inc YUM.N overnight, investors were further cheered by data showing the U.S. economy grew at a solid annualized pace of 6.5% in the second quarter.
"Today is a follow-on from really good earnings last night, which is great news," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, which manages $4 billion in assets. "The expectation is that we will continue to see good earnings."
The volley of positive news boosted the Dow Jones Industrial Average .DJI to a record high of 35,171.52 points before closing up 0.4%. The S&P 500 .SPX also jumped to an all-time high of 4,429.97 points before finishing 0.4% higher, while the Nasdaq Composite .IXIC added 0.3%.
Equity markets elsewhere were also buoyant as investors digested news of bumper financial earnings in Europe, while reports that Chinese regulators had called banks overnight to soothe concerns about a widening regulatory crackdown further brightened the mood.
The pan-European STOXX 600 index .STOXX climbed 0.46%, having also hit a record high of 464.31 points earlier, and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.9%.
Chinese blue-chip shares .CSI300 rebounded 1.9%, and the Hang Seng Tech Index .HSCI , the target of heavy selling recently, gained 3.8%, though it was still down 4% for the week.
The market exuberance did not extend to the dollar, which languished as investors digested the Federal Reserve's remarks on Wednesday that the strength of future economic data will determine when it starts to taper its bond purchases.
The dollar index =USD fell 0.38% to 91.898, a level last seen on June 29. A sluggish dollar hoisted the euro EUR=EBS up 0.35% to $1.1887, its highest in more than three weeks.
Treasury yields seesawed in choppy trade, as investors grappled with the conflicting signals of the Fed's dovish tone and the run of positive economic and corporate news.
By early Thursday evening, benchmark 10-year yields US10YT=RR were flat at 1.263%, unchanged from Wednesday. Two-year yields edged lower, however, pulling back to 0.2035% from 0.211%
Gold investors cheered the prospect that a dovish Fed more focused on supporting economic growth than tempering price pressures could bode well for bullion, seen as a hedge against inflation.
Spot gold XAU= added 1.2% to $1,827.79 an ounce. U.S. gold futures GCc1 gained 1.58% to $1,828.10 an ounce.
Oil prices were also firm as data showed crude stockpiles in the United States, the world's top oil consumer, fell to their lowest since January 2020, with Brent crude oil prices pushing back above $75 a barrel.
U.S. crude CLc1 recently rose 1.64% to $73.58 per barrel and Brent LCOc1 was at $76.06, up 1.77% on the day.
Asia stock markets Link
Asia-Pacific valuations Link
Beaten-up Chinese stocks rebound Link
Reporting by Koh Gui Qing in New York; Additional Reporting by
Marc Jones in London, Wayne Cole in Sydney; Editing by Jan
Harvey, Will Dunham and Alistair Bell
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.