U.S.
stocks overcame an afternoon slump to rebound from the lowest level in
21 months, as crude surged toward $30 amid signals from China and Europe
that officials will add to stimulus if needed. Treasuries fell with
gold as haven demand waned.
The
Dow Jones Industrial Average rose 115 points in a seesaw session that
had the gauge erase almost all of a 270-point rally before ending
higher. Investors piled into risk assets, boosting European equities to
the biggest gain in a month and sending crude 4.2 percent higher, after
the European Central Bank said it may bolster support as soon as March.
China’s vice president said the government would intervene to tamp down
market volatility. The yield on the 10-year Treasury note rose to 2.02
percent.
ECB
President Mario Draghi signaled at his briefing Thursday that
additional support is available as soon as March as distress in China
shows few signs of abating and oil’s slump fuels disinflation. Risks to
economic growth have increased amid the financial-market turmoil that
has erased more than $15 trillion from global equity values as markets
from Japan to Germany and Brazil plunged into bear territory.
Crude’s
climb above $29 a barrel in New York provided a glimmer of relief to
commodities investors battered by an oversupply in resources from oil to
copper and wheat. Calling the country’s market “not yet mature,”
China’s Vice President Li Yuanchao said the government would boost
regulation in an effort to avoid too much volatility. Corporate earnings
may also offer clues on the robustness of the U.S. recovery, with the
few companies that have reported so far mostly exceeding estimates.
The
S&P 500 rose 0.5 percent at 4 p.m. in New York, capping a session
that saw it rise as much as 1.6 percent after falling 1.2 percent
Wednesday to the lowest since April 2014. The index has swung from gains
to losses for seven consecutive sessions as investors seek a bottom to a
rout this year that’s erased 8.3 percent from the benchmark.
Energy
shares paced gains with a 3.1 percent advance. Chevron Corp. climbed
2.6 percent and Home Depot Inc. surged 3.5 percent as energy and
consumer discretionary companies paced the rebound from yesterday’s
selloff. Verizon Communications Inc. gained 3.5 percent after its profit
beat estimates. Union Pacific Corp. fell 4.9 percent after its earnings
missed forecasts.
Source : Bloomberg
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