Global: MARKETS-Stocks hit records; dollar, Treasury yields edge up as tapering debate dominates

ZhongAn Online P & C Insurance

12/08/2021 21:34

(Updates with close of U.S. markets)
    * Dow Jones Industrials, S&P 500 close at record highs
    * MSCI World index hits fresh record
    * Dollar, Treasury yields edge higher 
    * Gold holds above $1,750 level
    * Oil prices fall

    By Matt Scuffham
    NEW YORK, Aug 12 (Reuters) - Global stock markets hit record
highs on Thursday while the dollar and U.S. Treasury yields
edged higher, building on recent strength, as the debate
continued over when the Federal Reserve will start to ease
stimulus. 
    Data on Wednesday hinted that U.S. inflation may have
peaked, reassuring investors that the Federal Reserve will not
feel obligated to hasten plans to rein in emergency-level
support of the economy.  urn:newsml:reuters.com:*:nL1N2PI21X
    However, data on Thursday showed U.S. producer prices
registered their largest increase in more than a decade.
 urn:newsml:reuters.com:*:nL1N2PI133
    Overall, investors appeared to believe the possibility of
near-term tapering was receding.
    "There continue to be indications that this spike in
inflation is temporary. I don't think we're in a period where
we're anywhere close to a Fed taper," said Tim Ghriskey, chief
investment strategist at Inverness Counsel in New York, which
manages $4 billion in assets. 
    MSCI's gauge of stocks across the globe set a record high,
gained 0.10%.  .MIWD00000PUS  
    The Dow Jones Industrial Average  .DJI  and S&P 500  .SPX 
closed at record highs for the third consecutive day. 
    The Dow rose 14.88 points, or 0.04%, to 35,499.85, the S&P
500  .SPX  gained 13.13 points, or 0.30%, to 4,460.83 and the
Nasdaq Composite  .IXIC  added 51.13 points, or 0.35%, to
14,816.26.
    European stocks  .STOXX  equaled their longest winning
streak since 2017, closing up 0.1% and extending gains for a
ninth consecutive session.  urn:newsml:reuters.com:*:nL4N2PJ1PU
    The dollar advanced again, after hitting its highest since
April 1 on Wednesday.
    The dollar index  =USD  rose 0.114%, with the euro  EUR= 
down 0.03% to $1.1733.
    U.S. Treasury yields ticked slightly higher, building on
recent gains, after a 30-year bond auction failed to give the
market any convincing direction.  urn:newsml:reuters.com:*:nL1N2PJ1FP
    Benchmark 10-year notes  US10YT=RR  last fell 1/32 in price
to yield 1.3624%, from 1.359% late on Wednesday.
    Gold prices held slightly above the key $1,750 mark as
expectations of an early taper of the Federal Reserve's asset
purchases eased, offsetting a firmer dollar and yields.
 L4N2JNBFV 
    Spot gold  XAU=  was flat at $1,751.99 an ounce. U.S. gold
futures  GCv1  settled 0.1% down at $1,751.80.
    
 
    BEARS IN THE CHINA SHOP
    Asian shares dropped again overnight  .MIAPJ0000PUS ,
dragged down by a 0.8% fall in Chinese blue chips  .CSI300  and
a 0.5% drop in Hong Kong  .HIS  as weaker-than-expected China
lending data triggered liquidity concerns. 
    Among the biggest sliders was Chinese online insurer ZhongAn
 6060.HK , which fell 11.5% after state media said China's
banking and insurance regulator would step up scrutiny of online
insurance companies.  L4N2PJ14V  
    Nervous traders have been quick to respond to remarks from
Chinese state media and officials, after many were surprised by
last month's tougher-than-expected new rules for the private
tutoring sector https://www.reuters.com/world/china/chinas-tal-education-expects-hit-new-private-tutoring-rules-2021-07-25,
 one of several regulatory crack-downs that have roiled sectors
from technology to property https://www.reuters.com/world/china/education-bitcoin-chinas-season-regulatory-crackdown-2021-07-27.
 
    Whereas the all-world stock index  .MIWD00000PUS  has been
hitting regular record highs, MSCI's main Asian benchmark is now
down more than 10% from its February peak. Some Chinese stocks
have lost nearly 90%.
    "The money is just in the U.S. and European markets right
now, and that's our preferred market too," said Daniel Lam,
senior cross-asset strategist at Standard Chartered Wealth
Management. 
    Oil prices fell after the International Energy Agency (IEA)
said the spread of the Delta variant of the coronavirus would
slow the recovery in global oil demand. nL8N2PJ2GI
    U.S. crude oil futures settled at $69.09 per barrel, down 16
cents or 0.2%. Brent crude futures  LCOc1  settled at $71.31 per
barrel, down 13 cents or 0.2%.
      

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD    http://tmsnrt.rs/2egbfVh
Global asset performance    http://tmsnrt.rs/2yaDPgn
Asian stock markets    https://tmsnrt.rs/2zpUAr4
China stocks battered by Beijing's clampdown    https://tmsnrt.rs/3fRu52G
World stocks power higher    https://tmsnrt.rs/3iFbXuv
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Additional reporting by Devik Jain and Ambar Warrick in
Bengaluru; Editing by David Holmes, Dan Grebler and Chizu
Nomiyama)
 ((matthew.scuffham@thomsonreuters.com; +1-332-201-0609; Reuters
Messaging: matthew.scuffham.reuters.com@reuters.net))
 
((Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
Graphic: World FX rates http://tmsnrt.rs/2egbfVh
For Reuters Live Markets blog on European and UK stock markets, please click on:  LIVE/  ))