Global Markets: The S&P 500 drops, crude gains on upbeat vaccine news, recovery hopes
10/11/2020 16:18
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
(Updates to U.S. market open, changes dateline; previous
LONDON)
By Stephen Culp
NEW YORK, Nov 10 (Reuters) - The S&P 500 and the Nasdaq lost
ground on Tuesday and crude oil prices extended the previous
session's surge as encouraging prospects of an effective
COVID-19 vaccine led investors away from market leaders and
toward cyclical stocks associated with economic recovery.
The blue-chip Dow, buoyed by industrial shares, was modestly
higher and crude advanced as investors bet on rebounding demand.
Pfizer Inc's PFE.N announced on Monday that its COVID-19
vaccine candidate, developed with German partner BioNTech
BNTX.O , showed in trials it had a 90% success rate in
preventing infection. urn:newsml:reuters.com:*:nL1N2HV0TR
The development led to investors taking profits from
market-leading tech stocks that have thrived amid the pandemic
recession.
But some investors pondered whether the rotation was
premature.
"This action your seeing in tech is a sinking ship and the
rats are running to the other end," said Robert Pavlik, senior
portfolio manager at Dakota Wealth in Fairfield, Connecticut.
"I'm amazed by this massive rotation out of what's worked so
well in the economic shutdown.
"We've gone through these rotations from growth to value
only to it see it fade out real quickly," Pavlik added. "People
are saying it's different this time but how many times have we
heard that?"
The Dow Jones Industrial Average .DJI rose 139.28 points,
or 0.48%, to 29,297.25, the S&P 500 .SPX lost 20.44 points, or
0.58%, to 3,530.06 and the Nasdaq Composite .IXIC dropped
212.66 points, or 1.82%, to 11,501.13.
Optimism over a potential vaccine breakthrough helped keep
European shares near eight-month highs, but gains were held in
check by growing concerns about the depth of economic damage
wrought by the pandemic. urn:newsml:reuters.com:*:nL4N2HW2B2
The pan-European STOXX 600 index .STOXX rose 0.81% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.28%.
Emerging market stocks lost 1.26%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.81%
lower, while Japan's Nikkei .N225 rose 0.26%.
U.S. Treasury yields slipped on Tuesday in choppy trading,
pulling back from steep gains the previous session. But the
direction for rates has turned higher amid optimism about the
economy with the positive news on a potential coronavirus
vaccine.
Benchmark 10-year notes US10YT=RR last rose 3/32 in price
to yield 0.9476%, from 0.958% late on Monday.
The 30-year bond US30YT=RR last rose 11/32 in price to
yield 1.7351%, from 1.751% late on Monday.
Oil prices extended Monday's surge, which gave the commodity
its biggest daily percentage gain in five months, as views of a
possible medical solution to the pandemic outweighed sagging
demand from new lockdowns to contain the virus. urn:newsml:reuters.com:*:nL1N2HW03E
U.S. crude CLcv1 rose 1.51% to $40.90 per barrel and Brent
LCOcv1 was last at $42.94 per barrel, up 1.27% on the day.
Vaccine hopes also helped the dollar inch up against a
basket of currencies, as investors quit long positions in other
safe-haven currencies such as the Japanese yen and the Swiss
franc. urn:newsml:reuters.com:*:nL1N2HW103 urn:newsml:reuters.com:*:nL1N2HV2FF
The dollar index .DXY rose 0.04%, with the euro EUR= up
0.03% to $1.1817.
The Japanese yen strengthened 0.09% versus the greenback at
105.28 per dollar, while Sterling GBP= was last trading at
$1.3225, up 0.47% on the day.
Gold regained some ground lost in Monday's plunge as market
participants bet on continued monetary support from central
banks. urn:newsml:reuters.com:*:nL4N2HW2OE
Spot gold XAU= added 1.1% to $1,882.80 an ounce.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Stocks hit new highs https://tmsnrt.rs/38vx2mG
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Stephen Culp; additional reporting by Marc Jones;
Editing by Dan Grebler)
((Stephen.Culp@tr.com))