NEW YORK: US stocks mostly edged higher on Tuesday as technology shares extended recent gains while U.S. Treasury yields fell on safe-haven buying after Italy’s new prime minister outlined new economic policies that could add to the nation’s debt.
The so-called FAANG stocks – Facebook, Amazon , Apple, Netflix and Alphabet – rose. The S&P technology index gained 0.4 percent, while the Nasdaq hit a record intraday high.
Wall Street was on track for a third straight day of gains.
“We’ve had a few strong days in the aftermath of the jobs report where the market focused on economic fundamentals more than the negative forces such as tariffs and trade,” said Liz Ann Sonders, the New York- based chief investment strategist at Charles Schwab Corp.
The Dow Jones Industrial Average fell 12.51 points, or 0.05 percent, to 24,801.18, the S&P 500 gained 1.63 points, or 0.06 percent, to 2,748.5 and the Nasdaq Composite added 25.81 points, or 0.34 percent, to 7,632.27.
MSCI’s gauge of stocks across the globe shed 0.15 percent, while the pan-European FTSEurofirst 300 index lost 0.32 percent.
Earlier, equity indexes dipped after White House economic adviser Larry Kudlow said President Donald Trump may seek separate talks with Canada and Mexico in a bid to get individual trade deals with the two countries.
Mexico said it will impose tariffs of 15 percent to 25 percent on U.S. steel products and on some agricultural goods from pork to potatoes, in retaliation against Trump’s own metals tariffs.
The latest development in a growing trade conflict between the United States and its neighbors prompted selling. The Mexican peso and Canadian dollar saw their biggest losses against the U.S. dollar.
The Mexican peso lost 1.52 percent versus the U.S. dollar at 20.38. The Canadian dollar fell 0.39 percent versus the greenback at 1.30 per dollar.
The dollar index, tracking it against a basket of major currencies, fell 0.1 percent, reversing gains to nearly a six-moth high with the euro up 0.09 percent to $1.1708.
ITALY
U.S. Treasury yields fell as traders piled back into lower-risk debt after the comments by Italy’s new prime minister.
Benchmark 10-year notes last rose 7/32 in price to yield 2.9131 percent, from 2.937 percent late on Monday.
There was some selling of Italian government bonds after their rebound of the last few days, as traders digested the first comments from new Prime Minister Giuseppe Conte. Conte confirmed much of the coalition’s budget-busting agenda.
The 10-year Italian yield jumped 18 basis points to 2.736 percent after hitting a one-week low of 2.509 percent on Monday.
Copper hit a six-week high as concerns about the potential supply impact of wage negotiations at the world’s biggest copper mine helped push prices back above $7,000 a tonne.
Copper rose 2.04 percent to $7,117.00 a tonne.
Oil prices ended higher. U.S. crude rose 77 cents to settle at $65.52, while Brent gained 9 cents to settle at $75.38. For Reuters Live Markets blog on European and UK stock markets open a news window on Reuters Eikon by pressing F9 and type in ‘Live Markets’ in the search bar
Source: Brecorder
