Wall Street gains for 2nd day with a little BOJ assist
Main U.S. indexes advance; Nasdaq out front, up ~1.4%
All S&P 500 sectors green: Financials lead
Euro STOXX 600 index up ~1.7%
Dollar, gold up; crude up >1%; bitcoin slips
U.S. 10-Year Treasury yield rises to ~3.94%
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 GAINS FOR 2ND DAY WITH A LITTLE BOJ ASSIST
Shares on Wall Street are trading higher early on Wednesday due in part to comments from Bank of Japan Deputy Governor Shinichi Uchida saying the BOJ would not raise interest rates if financial markets remain jittery.
Stock markets across the globe rose as his comments helped ease the unwinding of carry trades in risky but high-yielding assets funded by the low interest rate-bearing yen.
The BOJ's rate hike on July 31 to a level unseen in 15 years had led to a surge in the Japanese unit, fueling a global stock rout as investors unwound their sharp currency carry trade positions.
All 11 S&P sectors are up on the day.
Tech titans such as Nvidia NVDA.O and Amazon.com AMZN.O are rising as well after falling sharply on Monday.
Chip stocks such as AMD AMD.O and Marvell Technology MRVL.O are also gaining.
Dave Rosenberg, founder and president of Rosenberg Associates, thinks that the market disruption from the end of the leveraged yen carry trade looks to be 60% done, meaning hedge funds no longer have these net speculative short positions on CME futures and options.
"Investors have rediscovered their verve and the dip buyers are back in force. Gone are any concerns about recession," writes Rosenberg in a research note.
"The worst Goldman Sachs says is a 25% chance of an official downturn. Markets seem to have embraced the view that the soft employment data last Friday were nothing more than a weather report."
Here's an early snapshot of assets across financial markets:
(Gertrude Chavez-Dreyfuss)
*****
FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:
HSBC WEALTH PICKS HEDGE FUNDS AS VOLATILITY RISES - CLICK HERE
S&P 500 INDEX: TIME FOR ANOTHER TURN? - CLICK HERE
WHAT HAS CHANGED AFTER THE MARKET MAYHEM? - CLICK HERE
ANOTHER TECH BUYER COMES INTO THE OPEN - CLICK HERE
A NEW LOW BEFORE A PROPER RECOVERY, JUST LIKE IN 2018? - CLICK HERE
BANKS LEAD GAINS IN EUROPE, HEALTHCARE DRAGS - CLICK HERE
GREEN SHOOTS FOR STOCKS - CLICK HERE
BOJ SAVES THE DAY - CLICK HERE
US markets early snapshot https://tmsnrt.rs/3SzJ1pd
Related Assets
Latest News
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.
