Tech leads U.S. stocks higher; oil gains
* Tech leads U.S. stocks higher on trade talks optimism
* Oil prices jump on fresh Middle East tensions
* European stocks edge higher
* ECB easing, Fed rate cut eyed
(Updates to market close)
By Stephen Culp
NEW YORK, July 22 (Reuters) - U.S. stocks gained ground on
Monday at the onset of a heavy earnings week, while European
shares inched higher as investors took heart from potential
progress in U.S.-China trade talks and increasing geopolitical
tensions sent oil prices climbing.
Tech pushed Wall Street into positive territory as investors
girded themselves for a week of second-quarter results from
major industrial and technology companies and eyed the U.S.
Federal Reserve's expected interest rate cut at the end of the
The South China Morning Post reported U.S. trade negotiators
will likely visit China next week for their first face-to-face
talk with Chinese officials since U.S. President Donald Trump
postponed a new round of tariffs on Chinese imports after a
meeting with his Chinese counterpart in Japan on June 29.
"I don't give much credence to the (trade) news," said
Stephen Massocca, Senior Vice President at Wedbush Securities in
San Francisco. "The chatter will continue, but we won't see
anything substantive this year."
The Dow Jones Industrial Average rose 17.7 points, or
0.07%, to 27,171.9, the S&P 500 gained 8.42 points, or
0.28%, to 2,985.03 and the Nasdaq Composite added 57.65
points, or 0.71%, to 8,204.14.
Growing tensions in the Middle East, coupled with worries
about Britain leaving the European Union (Brexit) without a deal
held world stocks flat.
"Brexit fears can be somewhat alleviated by a friendly
European Central Bank, and it appears that's the way they're
trending," said Bucky Hellwig, senior vice president at BB&T
Wealth Management in Birmingham, Alabama.
The pan-European STOXX 600 index rose 0.13% and
MSCI's gauge of stocks across the globe gained
Brent crude prices moved higher on worries that
Iran's seizure of a British tanker last week could lead to
U.S. crude settled at $56.22 per barrel, up 1.06%, while
Brent settled at $63.26, gaining 1.26% on the day.
The dollar and euro were little changed as traders looked to
policy decisions from the U.S. Federal Reserve and the European
Central Bank regarding the pace at which they will cut interest
rates, beginning with the ECB on Thursday.
"Clearly the ECB will loosen as will the Fed," added
Massocca. "It's all been very well-telegraphed by the markets."
"It's positive, it's bullish, but as far as what comes out
of those meetings I'm not anticipating any surprises."
The dollar index rose 0.14%, with the euro
down 0.12% to $1.1207.
U.S. Treasury yields fell and the yield curve flattened as
dovish Fed bank policy supported demand for government debt.
Benchmark 10-year notes last rose 1/32 in price
to yield 2.0482%, from 2.05% late on Friday.
The 30-year bond last rose 4/32 in price to
yield 2.5734%, from 2.578% late on Friday.
Gold held steady, on the heels of a sharp drop in the
previous session on lowered rate cut expectations, but the
safe-haven metal still found support in the form of global
Spot gold UP 0.08% at $1,425.24 an ounce.
Shipping prices rose on strong vessel demand, with the
Baltic Dry Index jumping to a 5-year high.
(Reporting by Stephen Culp; additional reporting by by Karin
Strohecker in London; additional reporting by Sujata Rao in
London and Shinichi Saoshiro in Tokyo
Editing by Susan Thomas)
First Published: 2019-07-22 02:52:22
Updated 2019-07-22 22:24:47
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.