U.S. stocks rose, with
equities swinging in a wide range amid light volume, as investors
assessed data showing a resilient labor market a week before the Federal
Reserve’s policy decision. Crude led gains in commodities, while global
shares retreated on concern China remains a threat to growth.
The Standard &
Poor’s 500 Index rebounded from a selloff yesterday in a market
increasingly characterized by sharp shifts in sentiment amid the looming
threat of higher interest rates. Equities from Asia to Europe declined
on renewed worry U.S. tightening as soon as next week would damp global
growth, while a downgrade of Brazil’s debt to junk roiled markets there
and underscored weakness in developing nations.
A second day of robust
U.S. jobs data bolstered the case for higher rates, while price data
from China added to the challenges facing policy makers in Asia’s
largest economy. The Bank of England said turmoil on the global
financial markets hasn’t shaken its economic outlook, fueling
speculation the Fed may also look past recent turbulence at its policy
meeting.
While economists
predict the Fed will increase its key rate next week, futures traders
price the odds of an increase at 28 percent, assuming the effective fed
funds rate will average 0.375 percent after the first increase.
In China, comments by
Premier Li Keqiang that the country still has “sufficient capability to
respond” if growth falls below a reasonable range failed to buttress
markets as data showed producer prices fell by the most since 2009.
The Standard &
Poor’s 500 Index gained 0.6 percent to 1,953 at 12:39 p.m. in New York,
after falling 1.4 percent yesterday. The Dow Jones Industrial Average
added 82.74 points, or 0.5 percent to 16,336.31. The Nasdaq Composite
Index rose 0.9 percent. Trading in S&P 500 companies was 9 percent
below the 30-day average for this time of day.
Source: Bloomberg
0 komentar :
Post a Comment