The Middletown Press (Middletown, CT)
Stocks extend winning streak
Trade hopes and the end of easy money were the twin themes in trading on Wednesday, with U.S. stocks extending gains and bonds falling as this week’s risk-on mood endured.
The S&P 500 pushed higher for a fourth consecutive day after dipping earlier into negative territory, led by gains in financials and health care companies. The Dow Jones Industrial Average climbed the most in almost two months. The Nasdaq Composite Index reached another record high, pushing its return for the year beyond 11 percent. Equities had opened higher across Asia on signs that major economies will step back from the brink of a trade war.
The Stoxx Europe 600 Index finished little changed as a strengthening euro provided a headwind and as Italian shares fell. Both were reacting to signs that the ECB is ready to discuss an end to quantitative easing, which sank bonds in the region and spurred fears for Italy’s embattled lenders.
The dollar stayed lower after the U.S. trade deficit narrowed to the lowest level since September thanks to record exports. Most metals rallied and 10-year Treasury yields climbed above 2.95 percent after China was said to offer to buy more American products and on reports the Treasury Department favors less sweeping investment limits on the Asian nation.
Investors have been here before: The on-again, offagain threat of protectionism is becoming a common refrain in global markets. They’ll now look ahead to the G-7 meeting this week for further developments in the story, as well as to this month’s meetings of both the Federal Reserve and the European Central Bank for more clues on monetary policy. ECB chief economist Peter Praet on Wednesday confirmed next week’s gathering will be pivotal for a decision on when to end its bond-buying program.
Elsewhere, oil slid lower after a U.S. government report showed a surprise increase in domestic crude stockpiles.