Global Markets: The S&P 500 retreats, crude gains as vaccine hopes boost recovery bets
10/11/2020 20:03
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
(Updates to afternoon)
By Stephen Culp
NEW YORK, Nov 10 (Reuters) - The S&P 500 and the Nasdaq
retreated on Tuesday and oil prices extended the previous
session's surge as promising developments toward 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, gained
ground and crude advanced as investors bet on a demand rebound.
Pfizer Inc 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.
"The rotation away from COVID beneficiaries to beneficiaries
of a more open economy continues today," said Peter Tuz,
president of Chase Investment Counsel in Charlottesville,
Virginia. "Some of the things that were expensive and tied to
the work-from-home economy seem to be suffering a bit.
"The Pfizer news really surprised everyone yesterday and put
a light at the end of the tunnel," Tuz added. "That tunnel may
be 12 months long or 6 months long, but it suggests that life is
going to get back to what it was before COVID started."
The Dow Jones Industrial Average .DJI rose 230.92 points,
or 0.79%, to 29,388.89, the S&P 500 .SPX lost 6.6 points, or
0.19%, to 3,543.9 and the Nasdaq Composite .IXIC dropped
157.55 points, or 1.35%, to 11,556.23.
European shares extended their gains on lingering vaccine
optimism and news that EU negotiators have agreed on a budget, a
crucial step toward activating the bloc's 1.8 trillion euro
recovery package. urn:newsml:reuters.com:*:nL1N2HW23U
The pan-European STOXX 600 index .STOXX rose 0.90% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.02%.
Emerging market stocks lost 1.11%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.68%
lower, while Japan's Nikkei .N225 rose 0.26%.
U.S. Treasury yields inched higher on Tuesday in choppy
trading, consolidating the previous session's gains due to
economic optimism in the wake of positive news on a potential
coronavirus vaccine. urn:newsml:reuters.com:*:nL1N2HW1WB
Benchmark 10-year notes US10YT=RR last fell 3/32 in price
to yield 0.9664%, from 0.958% late on Monday.
The 30-year bond US30YT=RR last fell 2/32 in price to
yield 1.7529%, 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 2.66% to settle at $41.36 per
barrel, while Brent settled at $43.61 per barrel, up 2.85% on
the day.
The dollar held its ground against a basket of currencies as
the forex markets absorbed Monday's big moves due to vaccine
developments. urn:newsml:reuters.com:*:nL1N2HW19G
The dollar index .DXY fell 0.02%, with the euro EUR= up
0.07% to $1.1821.
The Japanese yen strengthened 0.08% versus the greenback at
105.30 per dollar, while Sterling GBP= was last trading at
$1.3252, up 0.68% on the day.
Gold regained some ground lost in Monday's plunge
expectations of fiscal and monetary stimulus offered support to
the safe-haven metal. urn:newsml:reuters.com:*:nL4N2HW3WZ
Spot gold XAU= added 0.8% to $1,876.91 an ounce.
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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
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(Reporting by Stephen Culp; additional reporting by Marc Jones;
Editing by Dan Grebler and Nick Zieminski)
((Stephen.Culp@tr.com))