Stocks around the globe headed upward yesterday, with European bourses breaking a three-day losing streak, boosted by rising commodity and metals prices and US stocks underpinned by bargain hunting.
London copper rose to a three-year high, zinc held close to its highest in a decade and nickel reached a 2017 high as mostly technical signals prompted speculators and funds to pour more cash into base metals.
The gain in metals helped boost mining shares, propelling a broad index of European stocks up 0.85 per cent on the day.
BHP Billiton, the world’s largest mining company, reported a surge in underlying full-year profits and said it would exit its underperforming US shale oil and gas business, pleasing shareholders who had called for a sale.
In the United States, the Dow opened more than 100 points higher and the S&P 500 gained more than half-a-percent as investors went bargain hunting following the most turbulent two weeks since the election of US President Donald Trump.
The Dow Jones Industrial Average rose 137.26 points, or 0.63 per cent, to 21,841.01, the S&P 500 gained 16.65 points, or 0.69 per cent, to 2,445.02 and the Nasdaq Composite added 61.80 points, or 0.99 per cent, to 6,274.93.
MSCI’s metric of stocks around the world rose 0.45 per cent.
Emerging markets shares gained 0.75 per cent, continuing their outperformance this year. MSCI’s EM stock index tracker has risen more than 23 per cent year to date.
Chinese stocks have helped propel the rally in emerging markets and yesterday China’s Shanghai SE Composite, Shenzhen and Hang Seng indexes all closed higher.
Japan’s Nikkei index edged lower, its fifth straight day in the red amid lingering tensions on the Korean peninsula.
Meanwhile, the euro fell against the dollar, giving back most of its overnight gains after data showed German investor optimism dipped for the third straight month.
The yen fell from a four-month peak while the British pound hit an eight-week low against the greenback.
Tepid US inflation data have made it less likely the Federal Reserve will raise US interest rates anytime soon, weakening the dollar. So have doubts that Mr Trump can implement the stimulus programs and tax reforms he promised as a candidate.
The dollar index, which tracks the US currency against six rivals, was up 0.45 per cent to 93.498.
Benchmark 10-year US Treasury yields fell 6/32 in price.
Elsewhere, crude oil prices rose, lifted by indications that supply is gradually tightening, especially in the United States. Brent crude futures LCOc1 added 34 cents to $52 per barrel.