U.S. shares lifted by tech and energy; trade woes hurt emerging markets
* Global stocks gain for a 2nd straight day
* Oil prices spike on Iran sanctions
* Trade concerns keep pressure on emerging markets
(Updates to close of U.S. stock markets)
By Trevor Hunnicutt
NEW YORK, Sept 11 (Reuters) - A broad index of world stock
markets posted gains for a second straight day on Tuesday, as
investors piled into U.S. technology and energy stocks even as a
trade war loomed.
MSCI's index of global equities gained 0.17
percent as investors awaited action from U.S. President Donald
Trump after a deadline for public comment on additional tariffs
on Chinese goods expired.
Wall Street continued its rally, with the benchmark S&P 500
stock index still on pace to deliver what once seemed
improbable: a seventh year of double-digit percentage gains over
the last decade.
Shares of Apple Inc surged 2.5 percent a day ahead
of the highly anticipated unveiling of the company's new iPhone
models. Energy stocks got a boost from a rally in
U.S. job openings surged to a record high in July and more
Americans voluntarily quit their jobs, pointing to sustained
labor market strength and confidence that could soon spur faster
wage growth. While that data may point to higher
wages that could chip away at corporate profits, it also
showcases a strong economy. Markets may see more stimulus this
year from additional tax cuts being pondered by congressional
The Dow Jones Industrial Average rose 113.99 points,
or 0.44 percent, to 25,971.06, the S&P 500 gained 10.76
points, or 0.37 percent, to 2,887.89, and the Nasdaq Composite
added 48.31 points, or 0.61 percent, to 7,972.47.
"The fact that Trump still hasn't announced the tariffs yet
as expected has prompted a bit of cautious optimism, but it's
not a problem that's going to go away," said CMC Markets analyst
Emerging markets remained under pressure, with an index of
those countries' shares down 0.66 percent and touching
their lowest level in nearly 16 months. Those markets'
currencies are also at their lowest level in
more than a year, with some near record lows against the U.S.
dollar. Copper, heavily consumed by emerging markets, lost 0.51
percent to $5,880.00 a tonne.
China told the World Trade Organization on Tuesday it wanted
to impose $7 billion a year in sanctions on the United States in
retaliation for Washington's non-compliance with a ruling in a
dispute over U.S. dumping duties.
Trump told reporters on Tuesday that the United States was
taking a tough stance with China, but he described trade talks
with Canada as going well.
"Weakness is set to remain a recurring theme amid global
trade tensions, a broadly stronger dollar and prospects of
higher U.S. interest rates," said Lukman Otunuga, a research
analyst at broker FXTM. "With turmoil in Turkey and Argentina
triggering contagion fears, appetite for emerging market assets
and currencies is likely to continue diminishing."
Oil prices ignored the threat to demand posed by a trade war
that could slow economic growth, taking their cue instead from
looming U.S. sanctions against Iran's petroleum industry that
could hurt supply.
U.S. crude futures settled up 2.53 percent at $69.25
per barrel and Brent rose 2.18 percent to $79.06.
Bond markets worked to digest $144 billion in new supply
from government auctions needed to finance U.S. deficit
spending. Benchmark 10-year notes last fell 12/32 in
price to yield 2.9792 percent, from 2.937 percent late on
(Reporting by Trevor Hunnicutt; Additional reporting by Abhinav
Ramnarayan in London; Editing by Bernadette Baum and Leslie
First Published: 2018-09-11 02:25:42
Updated 2018-09-11 22:19:20
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