Global Stock markets on Tuesday, August 22, jumped higher, driven by mining companies in Europe and technology shares on Wall Street, while crude oil rebounded on indications supply is gradually tightening, especially in the United States.
A gauge of global equity markets, MSCI’s all-country world stock index <.MIWD00000PUS) added 0.52 percent, while its emerging markets index .MSCIEF gained 0.82 percent.
U.S. Treasury and gold prices fell ahead of an annual meeting this week of central bankers in Jackson Hole, Wyoming, where Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi are due to speak.
A broadly resurgent U.S. dollar prompted investors to square positions in a thin market before the central bank conference begins on Thursday.
With investors caught between a generally benign economic backdrop that prevents too much of a sell-off but lacks a catalyst for new highs, “we do seem to be settling into more of a range-bound market,” said Larry Hatheway, chief economist at asset manager GAM.
Stocks on Wall Street rallied, lifted by 1-percent gains in information technology shares .SPLRCT and materials .SPLRCM.
The Dow Jones Industrial Average .DJI rose 125.05 points, or 0.58 percent, to 21,828.8. The S&P 500 .SPX gained 15.62 points, or 0.64 percent, to 2,443.99 and the Nasdaq Composite .IXIC added 63.84 points, or 1.03 percent, to 6,276.96.
In London, the blue-chip FTSE 100 equity index .FTSE rose 0.89 percent, lifted by a rally in base metals that pushed copper to a three-year high and nickel to its strongest in eight months on the London Metal Exchange.
Copper CMCU3 rose to $6,642.50 a tonne, the highest since November 2014, before paring gains to $6,592.50, while three-month nickel CMNI3 was bid up 1.4 percent at $11,475 a tonne.
A worker shelters from the rain under a Union Flag umbrella as he passes the London Stock Exchange in London, Britain, October 1, 2008.
The FTSEurofirst 300 index .FTEU3 of leading European shares rose 0.85 percent.
Europe’s basic resources sector .SXPP enjoyed a second session of gains and was the top-gaining sector, supported by a rally in iron ore prices. [MET/L]
Benchmark 10-year U.S. Treasury notes US10YT=RR were last down 6/32 in price to yield 2.2009 percent.
In European debt markets, Italian government bond yields jumped, stretching the gap with German bunds to a five-week high, in the wake of proposals to introduce a parallel currency in Italy that have upped the ante for elections due next year.
