World stocks hit 1-month high as traders look to earnings boost

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imageEconomy1 hour ago (Oct 19, 2021 17:21)

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© Reuters. FILE PHOTO: A man looks at stock market monitors in Taipei January 22, 2008. REUTERS/Nicky Loh

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By Caroline Valetkevitch

NEW YORK (Reuters) – Stock indexes around the world rose on Tuesday as U.S. technology shares extended recent gains and as earnings news was mostly upbeat, while the U.S. dollar weakened.

U.S. Treasury yields appeared to stabilize, which reduced demand for the greenback.

On Wall Street, the technology sector boosted the S&P 500 the most, while recent stronger-than-expected results have bumped up the forecast for S&P 500 earnings for the third quarter, according to IBES data from Refinitiv.

“We could actually see us hit a new all time high before the end of the year is out because of corporate profits and typical seasonal optimism,” said Sam Stovall, chief investment strategist at CFRA.

Among U.S. companies reporting results on Tuesday, insurer Travelers (NYSE:TRV) Cos Inc beat estimates for third-quarter profit and its shares rose.

The Dow Jones Industrial Average rose 166.18 points, or 0.47%, to 35,424.79, the S&P 500 gained 28.08 points, or 0.63%, to 4,514.54 and the Nasdaq Composite added 93.20 points, or 0.62%, to 15,115.01.

The pan-European STOXX 600 index rose 0.38% and MSCI’s gauge of stocks across the globe gained 0.69%.

Graphic: MSCI World Index https://fingfx.thomsonreuters.com/gfx/mkt/zgvomrjmavd/world%20stocks%20oct%2019.PNG

The dollar index against a basket of other currencies was last down 0.27% on the day at 93.67, after earlier dropping to 93.50, the lowest since Sept. 28.

Currencies, including sterling and the New Zealand dollar, are benefiting from rising interest rate increase expectations.

The British pound jumped 0.60% to $1.3810 as money markets priced in a cumulative 35 basis points in rate hikes by the end of the year.

Bitcoin last rose 1% to $62,657.04.

In the U.S. Treasury market, the yield curve widened, reversing the recent trend.

In late morning U.S. trading, U.S. 10-year yields were last up 3.4 basis points at 1.6161%.

U.S. crude recently rose 1.1% to $83.35 per barrel and Brent was at $85.02, up 0.82% on the day.

In other commodities, U.S. gold futures gained 0.46% to $1,772.90 an ounce.

Equity indexes rise with tech shares, earnings; dollar dips

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