Wednesday, August 5, 2020
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Global equity markets rise; Brent near $108

NEW YORK: Global equity markets rose, bolstered by US economic data that was largely promising and signs that China will step in to support a cooling economy, while euro zone government bond yields fell on renewed bets the European Central Bank will ease policy next week.
The price of Brent crude oil was flat, near $108 a barrel, heading for the first weekly rise in five, helped by data showing a rise in US consumer spending in February.
Gold fell to six-week lows under $1,300 an ounce and was on track for a second straight weekly decline as the US economic outlook lifted the dollar and bolstered risk appetite. Yields on intermediate-dated US Treasury notes neared two-month highs.
Analysts and traders expected such debt to continue underperforming longer-term bonds after US Federal Reserve Chair Janet Yellen’s recent indication that US interest rates could be hiked by spring 2015.
On Wall Street, all 10 major S&P 500 sectors gained in a broad rally after two days of losses.
Among the indexes, the Dow turned positive for the week and the S&P sharply cut weekly losses to show a gain for 2014.
But the Nasdaq remained on track for a negative week after heavy profit-taking on some of the market’s biggest outperformers.
“We are seeing a good rebound today, but there are still a lot of factors that indicate we could be going into a more sizeable correction,” said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research in Austin, Texas.