Shares rebound but remain on track for weekly loss

By Laila Kearney

NEW YORK, Oct 12 (Reuters) – Stock markets worldwide bounced back on Friday after a multi-day selloff that left the equity markets on track for their biggest weekly losses in months, while U.S. Treasury yields moved higher and the dollar held its gains.

Wall Street surged after the U.S. stock market’s worst two days of losses since February, with the technology sector moving towards its best day in seven months after being hammered earlier in the week.

The Dow Jones Industrial Average climbed 294.13 points, or 1.17 percent, to 25,346.96, the S&P 500 gained 41.12 points, or 1.51 percent, to 2,769.49 and the Nasdaq Composite added 161.90 points, or 2.21 percent, to 7,490.96.

The MSCI All-Country World index, which tracks shares in 47 countries, was up 1.4 percent on the day.

European stocks also opened higher following a rise in Asian shares overnight, but began to edge lower by mid-morning. The pan-European FTSEurofirst 300 index lost 0.06 percent.

“Some traders are cautiously buying back into the market today, but the underlying issues which brought about the sell-off are still relevant,” CMC Markets analyst David Madden said.

Results for the United States’ largest banks, which began to roll in on Friday, were expected to set the tone for earnings season and help gauge the impact on U.S. company profits from President Donald Trump’s trade war with China.

“The market is going to focus on not just current quarter earnings, but guidance going forward, particularly as it relates to the profit margins. You’ve got some indications of rising wage pressure and higher interest rates,” said Willie Delwiche, investment strategist at Robert W. Baird

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