Latest technology updates
(Updates with U.S. inventory market shut)
* Oil costs fall on concern about oversupply
* U.S. jobless claims reinforce view of slower U.S. restoration
* Graphic: 2020 asset efficiency tmsnrt.rs/2yaDPgn
* Graphic: World FX charges in 2020 tmsnrt.rs/2egbfVh
* Graphic: Global stocks since Feb tmsnrt.rs/2CH2eSe
* Reuters Live Markets weblog:
By Alwyn Scott
NEW YORK, Aug 20 (Reuters) – The greenback eased and global fairness markets fell on Thursday, even as the tech-heavy NASDAQ index touched a report excessive and seemed previous the rising indicators of extended financial weak spot. Gold additionally rose in an indication of protected-haven shopping for.
Economic considerations weighed on equities earlier within the day, reflecting Wednesday’s concern from the Federal Reserve in regards to the U.S. labor market slackening as U.S. coronavirus circumstances rise.
That pessimism was bolstered on Thursday by a shock bounce of greater than 1 million in new U.S. claims for unemployment help, which despatched broader inventory indices decrease.
The new jobless claims studying was effectively above the forecast of economists polled by Reuters that anticipated 925,000 new functions within the newest week.
“Anytime there’s concern about the economic recovery, that always hurts,” mentioned Tim Ghriskey, chief funding strategist at Inverness Counsel in New York.
But U.S. tech stocks defied the downbeat temper and prolonged their upward streak. The Nasdaq surged to a recent report excessive, led by positive aspects in Apple Inc, Microsoft Corp and Tesla Inc.
The tech-heavy index is 15% greater than its pre-COVID peak in February, whereas the broad S&P 500 slid from a brand new all-time excessive set Wednesday, to under its earlier peak additionally reached six months in the past.
“The love for technology stocks grew as the favorite pandemic plays, such as Apple and Tesla, saw strong demand,” Edward Moya, senior market analyst at OANDA in New York, mentioned in a be aware. “No one wants to short this market, so we are seeing investors just rotate back into technology stocks today.”
The MSCI world fairness index, which tracks shares in 49 nations, fell 0.3% to 570.18.
The Dow Jones Industrial Average rose 0.2%, the S&P 500 gained 0.3% and the Nasdaq Composite added 1.1%.
Oil costs fell about 1%, in the meantime, as considerations mounted about extra crude provides. The decline got here after Reuters reported that some members of the Organization of the Petroleum Exporting Countries and its allies, identified an OPEC , would wish to chop output by an additional 2.31 million barrels per day (bpd) to make up for current oversupply.
OPEC had mentioned on Wednesday the oil market restoration gave the impression to be slower than anticipated with rising dangers of a protracted second wave of the pandemic.
U.S. crude futures settled down 0.8% at $42.58 per barrel. Brent crude futures settled at $44.90 per barrel, down 1%.
The greenback had been gaining floor since hitting a 27-month low it hit on Tuesday. On Thursday, the greenback index fell 0.168%, with the euro up 0.13% to $1.1851.
The Japanese yen strengthened 0.22% versus the buck at 105.89 per greenback, whereas Sterling was final buying and selling at $1.3194, up 0.73% on the day.
Wall Street was knocked from its current highs on Wednesday after the Fed’s minutes from its July assembly spooked traders by exhibiting that the swift labor market rebound seen in May and June had possible slowed.
The S&P 500 had reached an all-time excessive earlier within the week as costs recovered to their pre-pandemic ranges.
The sudden bearishness spilled into Asian markets in a single day and continued within the European session, though shares began to recuperate as the morning progressed.
Several Fed policymakers mentioned they might must ease financial coverage to assist get the financial system by way of the coronavirus pandemic.
Gold rebounded in a single day and after the U.S. jobless data on demand for the protected-haven asset.
Spot gold added 0.8% to $1,945.61 an oz.. U.S. gold futures settled down 1.2% to $1,946.50 an oz..
Reporting by Alwyn Scott, Herbert Lash and Elizabeth Howcroft;
Editing by Marguerita Choy and Steve Orlofsky