World stocks advance to two-week highs on falling oil and yields
World stocks rose on Tuesday, reaching two-week highs as falling oil prices and retreating bond yields steadied sentiment ahead of an earnings season expected to be driven by AI growth. S&P 500 futures pointed to a record-high open, while the Nasdaq was on track for a third consecutive all-time high.
7% Oil dips, euro edges up from 17-month lows Long-dated Treasury yields ease from multi-decade highs (Updates for early European afternoon trading) By Medha Singh and Stella Qiu Oct 6 (Reuters) — World stocks scaled two-week highs on Tuesday as easing oil prices and bond yields helped steady sentiment, while investors looked ahead to an earnings season expected to be powered by continued AI-driven growth. Futures pointed to a record-high open for the S&P 500 for the first time since mid-August, while the tech-heavy Nasdaq was on track for a third consecutive all-time high. 6%. 2%.
Bond markets found some respite on Tuesday after France's unpopular budget triggered a French debt rout and fuelled fears of broader stress across the euro zone. 1239, stabilising after hitting a 17-month low in the previous session due to concerns about the euro zone's fiscal outlook. Political uncertainty also deepened after Spain called a snap election on Monday. 708% after surging to its highest since the 2000s last week.
Far-right leader Marine Le Pen, the frontrunner in next spring's presidential election, increased her plans to slash spending if elected in 2027. "On the one hand you've got quite material pressure being felt on the government bond side. But elsewhere the corporate side of things actually don't look too bad. You've got companies whose earnings remain very robust.
We're getting into the earnings season fairly soon, expectations for that are pretty high," said James Klempster, deputy head of multi-asset at Liontrust in London. With few major catalysts on this week's calendar, investors are increasingly focused on third-quarter earnings, which begin in earnest next week. Goldman Sachs estimates consensus forecasts imply 27% growth in S&P 500 earnings, with more than half that coming from companies benefiting from AI infrastructure spending. 8 trillion.
5%. 9% overnight as resilient Middle East crude exports and a G7 emergency stockpile release eased supply concerns, though ongoing security risks in the region limited losses. Bond Worries Linger The dollar weakened broadly against most major currencies, reversing some recent advances as investors pared back their bets on US interest rate hikes following a soft US jobs report and policymakers' calls for more evidence before further tightening. 80 after rising 3% over the past month.
Traders scaled back expectations of a Federal Reserve rate increase this month to 22% from about 50% a week earlier. Long-dated US Treasury yields also eased after touching fresh 24-year highs on Monday amid a persistent selloff since late August on inflation and debt concerns. 6356%. Attention remained fixed on France's fiscal outlook.
67 bps, its highest level since the euro zone debt crisis in 2011. France's Finance Minister Roland Lescure said market turbulence had not reached a level warranting ECB intervention. 45%. "Absent a credible catalyst, OAT-Bund spreads are likely to remain in the 130-150 bp range, while partial progress to reduce political uncertainty could bring them towards 120-130 bp," ABN AMRO's senior rates strategist Larissa de Barros Fritz said in a note.
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