Economy 4 MIN READ

GLOBAL MARKETS-Stocks rise with growth names, dollar up on talk of more Moscow sanctions

April 5, 2022By Reuters

U.S. stocks gain with megacaps

Oil prices jump, U.S. dollar strengthens

2yr/10yr Treasury yield curve remains inverted

New throughout, updates prices, market activity and comments to U.S. close

By Caroline Valetkevitch

Stocks on global indexes rose on Monday, with the Nasdaq and growth names leading gains on Wall Street, while the U.S. dollar strengthened on talk of more sanctions against Moscow following international outrage over Ukraine civilian killings.

Adding to investor caution, the 2-year/10-year Treasury yield curve remained inverted, signaling to some market watchers that a recession may follow in one to two years.

The deaths in Bucha, outside Kyiv, are likely to galvanize the United States and Europe into additional sanctions against Moscow over its invasion of Ukraine. nL2N2W2027 The prospect of more sanctions boosted oil prices which jumped over 3%. O/R

The dollar gained for the third straight session as investors sought safety in the greenback. nL2N2W21GJ

“The dollar is bouncing higher as geopolitical developments have darkened clouds over the global economy,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. The Kremlin, which calls its action a “special operation,” denied accusations related to the murder of civilians.

The U.S. currency also remained buoyed by a strong non-farm payrolls report for March that backed expectations for a half of a percentage point rate hike by the Federal Reserve next month.

The dollar index =USD rose 0.369%.

The euro EUR=EBS, which has been pressured by economic worries since the invasion of Ukraine, fell 0.8% versus the dollar to $1.0970. Against sterling, the euro fell 0.7% at 83.64 pence. EURGBP=D3

On Wall Street, Twitter shares surged 27.1% on news that Tesla Inc TSLA.O Chief Executive Officer Elon Musk has built a 9.2% stake in Twitter Inc TWTR.N. nL3N2W21EZ

Other big growth shares also gained, with the technology .SPLRCT and consumer discretionary .SPLRCD giving the S&P 500 its biggest boost.

“Investors are not willing to give up the names that have brought them to this point. They’ve been the favorites for a lot of investors and they’re not ready to move on to something else,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

The Dow Jones Industrial Average .DJI rose 103.61 points, or 0.3%, to 34,921.88, the S&P 500 .SPX gained 36.78 points, or 0.81%, to 4,582.64 and the Nasdaq Composite .IXIC added 271.05 points, or 1.9%, to 14,532.55.

The pan-European STOXX 600 index .STOXX rose 0.84% and MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 0.86%.

In the U.S. Treasury market, the yield on 10-year Treasury notes US10YT=RR was last at 2.404% while the 2-year note yield US2YT=RR was at 2.420%. nL2N2W21GI

The jump in U.S. bond yields has boosted the dollar, particularly against the yen as the Bank of Japan acted repeatedly last week to keep bond yields near zero.

The U.S. Commerce Department said factory orders fell 0.5% in February, in line with expectations. Data for January was revised slightly higher to show orders rising 1.5% instead of 1.4% as previously reported.nL2N2W212V

Brent crude LCOc1 jumped $3.14, or 3%, to settle at $107.53 a barrel. U.S. West Texas Intermediate crude CLc1 rose $4.01, or 4%, to settle at $103.28 a barrel. nL2N2W205L

Asia stock markets

Asia-Pacific valuations

(Additional reporting by Gertrude Chavez-Dreyfuss and Stephanie Kelly in New York, Julien Ponthus in London; Editing by Richard Chang, Andrea Ricci and David Gregorio)


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