Global shares rise, US yields fall as strong earnings allay election worries
· CNA · JoinNEW YORK :Global shares rose on Thursday, on track to snap three straight sessions of losses, while U.S. yields as strong corporate results help to allay worries over upcoming elections and rate cuts.
Tesla jumped 17 per cent after CEO Elon Musk on Wednesday provided a rosy forecast on car sales growth next year that helped to reassure investors.
Benchmark S&P 500 and Nasdaq were trading higher in early trading, driven by consumer discretionary and real estate stocks. The Dow was down.
The Dow Jones Industrial Average fell 0.25 per cent to 42,409.90, the S&P 500 rose 0.29 per cent to 5,814.36 and the Nasdaq Composite rose 0.68 per cent to 18,401.81.
European shares were also trading up 0.18 per cent and were set to snap three consecutive sessions of losses amid positive results from Renault, Unilever and Hermes. MSCI's gauge of stocks across the globe rose 0.24 per cent to 846.38.
"Markets have traded lower over the past three or four days as a bit of a pause after a huge surge, with most of the equity indexes still trading rather near their all time highs." said Michael Farr, president and chief executive at Farr, Miller & Washington.
"So markets are adjusting to a new forecast for the Fed in its own mind that perhaps the Fed isn't going to be lowering rates quite as extensively and quickly as they hope. However, the real bottom line is the economy doing OK and earnings season is coming on with reasonable gains," Farr added.
Traders are now pricing in a near 95 per cent chance of a 25 basis point cut at both of the Fed's November meetings, according to the CME Group’s FedWatch Tool. Benchmark 10-year note yields were last down 3.6 basis points at 4.206 per cent after reaching 4.26 per cent on Wednesday, the highest since July 26.
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