US markets wrap: Stocks, commodities gain on economic outlook
Friday, 18 September 2009
NEW YORK, Sept. 17 (Bloomberg): US stocks climbed, extending a global advance that sent the MSCI World Index to the highest level in almost a year. Commodities gained amid speculation the economy has returned to growth.
Crude oil topped $72 a barrel, and natural gas soared 13 per cent. Gold rose to a record close as the dollar slid to its weakest against the euro in almost a year. Treasury two-year notes fell the most in three weeks.
Shares of General Electric Co. jumped 6.3 per cent and Alcoa Inc. climbed 3.4 per cent after a Federal Reserve report showed industrial production increased more than forecast. New York Times Co. and Gannett Co. surged more than 10 per cent after a market-research firm said some media companies may benefit from more spending on advertising.
"Investors have been embracing risk as they feel more comfortable about the global economy," said John Carey, a Boston-based money manager at Pioneer Investments, which oversees more than $200 billion worldwide. "There seems to be a better sentiment regarding big companies, such as GE, that were under such a cloud during the peak of the credit crisis."
The Standard & Poor's 500 Index gained 1.5 per cent to 1,068.76, and the Dow Jones Industrial Average added 108.3 points, or 1.1 per cent, to 9,791.71. More than six stocks rose for each that fell on the New York Stock Exchange.
American Express Co. rallied 3.4 per cent after Sandler O'Neill & Partners LP upgraded the shares.
The MSCI World Index of 23 developed nations has climbed 67 per cent since March 9 as the Fed kept its target rate for overnight lending between banks at near zero to unlock credit markets after the bankruptcy of New York-based Lehman Brothers Holdings Inc. a year ago. The S&P 500 has rallied 58 per cent over the same period.
The dollar declined as the increase in US industrial output encouraged investors to buy higher-yielding assets.
New Zealand's currency was one of the biggest winners among 16 counterparts measured against the yen and dollar as investors were lured to a three-month deposit rate almost 10 times higher than in the US So-called carry trades funded with equal amounts of dollars and yen gained 1.3 per cent this week, according to data compiled by Bloomberg.
"We are in an environment that is constructive for growth," said Lauren Rosborough, a currency strategist in London at Westpac Banking Corp. "It is positive for high- yielding, high-beta currencies. We are seeing evidence that cash is moving out of banks."
Crude oil topped $72 a barrel, and natural gas soared 13 per cent. Gold rose to a record close as the dollar slid to its weakest against the euro in almost a year. Treasury two-year notes fell the most in three weeks.
Shares of General Electric Co. jumped 6.3 per cent and Alcoa Inc. climbed 3.4 per cent after a Federal Reserve report showed industrial production increased more than forecast. New York Times Co. and Gannett Co. surged more than 10 per cent after a market-research firm said some media companies may benefit from more spending on advertising.
"Investors have been embracing risk as they feel more comfortable about the global economy," said John Carey, a Boston-based money manager at Pioneer Investments, which oversees more than $200 billion worldwide. "There seems to be a better sentiment regarding big companies, such as GE, that were under such a cloud during the peak of the credit crisis."
The Standard & Poor's 500 Index gained 1.5 per cent to 1,068.76, and the Dow Jones Industrial Average added 108.3 points, or 1.1 per cent, to 9,791.71. More than six stocks rose for each that fell on the New York Stock Exchange.
American Express Co. rallied 3.4 per cent after Sandler O'Neill & Partners LP upgraded the shares.
The MSCI World Index of 23 developed nations has climbed 67 per cent since March 9 as the Fed kept its target rate for overnight lending between banks at near zero to unlock credit markets after the bankruptcy of New York-based Lehman Brothers Holdings Inc. a year ago. The S&P 500 has rallied 58 per cent over the same period.
The dollar declined as the increase in US industrial output encouraged investors to buy higher-yielding assets.
New Zealand's currency was one of the biggest winners among 16 counterparts measured against the yen and dollar as investors were lured to a three-month deposit rate almost 10 times higher than in the US So-called carry trades funded with equal amounts of dollars and yen gained 1.3 per cent this week, according to data compiled by Bloomberg.
"We are in an environment that is constructive for growth," said Lauren Rosborough, a currency strategist in London at Westpac Banking Corp. "It is positive for high- yielding, high-beta currencies. We are seeing evidence that cash is moving out of banks."