World stocks rise to 2-week high after Trump leaves hospital for coronavirus treatment.

Global News

Breaking news &current latest Canadian news headlines;national weather forecasts &predictions, local news videos, money and financial news;sports stats and scores.

https://globalnews.ca/

Click to play video 'Coronavirus: President Donald Trump returns to White House after hospital visit'

WATCH: President Donald Trump returns to White House after hospital – Oct 5, 2020

World stock markets neared a more than two-week high on Tuesday after U.S. President Donald Trump’s return to the White House from the hospital where he was treated for COVID-19, and expectations of a new U.S. stimulus package being agreed rose.

Europe saw a stuttering start with London’s FTSE dipping and not much traction from France, Italy or Germany, despite a “remarkable” jump in German industrial orders.

Wall Street and most of Asia rallied overnight after Trump’s return from the Walter Reed Medical Center military hospital outside Washington eased nerves about possible disruption to next month’s presidential election.

Gold, bonds and the dollar suffered losses amid the modestly improved risk appetite, though Wall Street futures had slipped into the red and oil was losing its strong overnight momentum.

“The market is slightly short of oomph,” said Societe Generale’s Kit Juckes, pointing to Europe’s subdued start.

“It has not managed to get a meaningful lift from it(Trump leaving hospital)and I think it is threatening to take a time out and wait for what comes next,” he added.

Trump returned to the White House on Monday after a three-night hospital stay and said he felt “real good,” although one of his doctors cautioned that he may not be out of the woods until later in the week.

MSCI’s broadest index of Asia-Pacific shares had risen 0.7 per cent to a two and a half week-high, with Hong Kong climbing 0.8 per cent and Japan’s Nikkei adding 0.5 per cent. China’s markets remained closed for a public holiday.

U.S. stimulus hopes were still bubbling in the background after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour and said they were preparing to talk again on Tuesday.

Trending Stories

“If we do see some form of stimulus coming through, I think the market will take it in a positive light,” said J.P. Morgan Asset Management’s Chief Asia Market Strategist Tai Hui.

Central focus

S&P 500 futures were a touch weaker after the best daily gain on the S&P 500 index in a month overnight, while the optimism hit gold and other safe haven assets.

Spot gold fell 0.1 per cent to $1,911 per ounce, after hitting a two-week peak on Monday, and U.S. gold futures were down 0.21 per cent.

READ MORE: Trump’s positive coronavirus test puts stock market on edge

Bond markets also joined in, as a sharp selloff in U.S. bonds on Monday carried over into Asia and Europe.

Benchmark 10-year German government bond yields, which move inverse to price, hit their highest in over a week. Japanese government bond futures fell to a one-month low in the steepest drop in more than five weeks and South Korean yields jumped.

However, analysts said selling in other Asian markets was more subdued than in the U.S. market because regional investors are beginning to price in a victory for Democratic presidential candidate Joe Biden in the Nov. 3 election.

European Central Bank president Christine Lagarde and U.S. Federal Reserve chief Jerome Powell were also scheduled to speak later in the day, giving traders extra reason for patience.

“The sell off in U.S. yields is more driven by Trump getting out of hospital,” said DBS rates strategist Duncan Tan in Singapore.

“That narrows some of the uncertainties around the election process. In the short term, at the very least, it removes the tail risk of having to consider if Trump or Biden is unable to participate in the election.”

U.S. 10-year yields were steady at 0.77 per cent while in the currency markets, the dollar was under pressure from most other majors with the exception of the safe-haven Japanese yen.

The dollar gained on the yen to reach 105.62 yen, not far short of its highest levels in three weeks.

The Australian dollar gained briefly after the Reserve Bank of Australia left rates on hold, as expected, but later fell back, and the potential for further monetary easing capped gains.

Oil jumped more than five per cent overnight and edged higher still in Asia, supported by the Trump news and a supply squeeze as a strike shut six Norwegian offshore oil and gas fields.

U.S. crude last stood at $39.15 a barrel, up 0.2 per cent and, Brent crude rose 0.1 per cent to $41.35.

© 2020 Reuters

Новини по темі

Footage shows catastrophic collapse of iconic Puerto Rico telescope.

The Arecibo Observatory was an invaluable tool used to scan the universe for asteroids, planets, radio signals and alien life.

Record Covid Deaths In US Prompt Calls For Masking, Stay-At-Home Orders.

US leaders urgently called on Americans to wear masks and threatened even more drastic stay-at-home orders after deaths from the coronavirus set a single-day record, with two people dying every...

Shmyhal invites British business delegation to Ukraine.

Ukrainian Prime Minister Denys Shmyhal has invited a British business delegation to Ukraine for meetings with Ukrainian businessmen, according to the website of the Ukrainian government.

China Says US Allegations On Threat To Democracy «Hodgepodge Of Lies».

Beijing on Friday lashed out at a claim by the US intelligence chief that China is the "greatest threat to democracy and freedom worldwide", calling it a "hodgepodge of lies".

Watch: Jeff Bezos Shows Off Rocket Engine That'll Put 1st Woman On Moon.

Amazon founder Jeff Bezos's aerospace company Blue Origin has its eyes set to put the first woman on the Moon.

20 million Americans could get coronavirus vaccine this year: FDA chief.

The FDA expects to move quickly after a Dec. 10 review of the coronavirus vaccine developed by Pfizer and 20 million Americans could be vaccinated this year.

Trump again threatens to veto 2021 Defense Bill

The U.S. Congress has recently finalized the 2021 Defense Appropriations Act.

Bangladesh Ships Rohingya Refugees To Remote Island Despite Outrage.

Bangladesh naval vessels carried some 1,600 Rohingya refugees towards a remote island in the Bay of Bengal on Friday despite complaints by refugees and humanitarian groups that some were being...

‘Unacceptable’: India warns Trudeau his remarks on farmers’ protests may hurt bilateral ties.

The Indian foreign ministry said in a statement that comments on "issues relating to Indian farmers constitute an unacceptable interference in our internal affairs."

Called «Horrible Monkey» : Dutch Scientists Tackling Covid Get Threats.

Several members of a group of scientists that advises the Dutch government on managing the Covid-19 pandemic have received threats, local media reported Friday.