(New throughout, updates prices, market activity and comments
to U.S. market close)
* Schumer reportedly says McConnell agreed to new talks
* New aid for U.S. businesses seen supporting economic
growth
* U.S. technology stocks drive Nasdaq higher
By Alwyn Scott
NEW YORK, Nov 19 (Reuters) - Stocks rallied while the dollar
fell on Thursday, and oil settled lower but rose after hours
following a report that U.S. lawmakers may restart negotiations
on economic stimulus, which lifted gloom that had persisted
through most of the global day.
Top Senate Democrat Chuck Schumer said Republican Majority
Leader Mitch McConnell had agreed to resume COVID-19 relief
talks as cases surge across the country, CNBC reported.
"It's all about the restart of stimulus negotiations,"
Edward Moya, senior market analyst at OANDA in New York, said of
the quick shift by markets. "This should be a strong market
catalyst and have follow through in Asia" on Friday, Moya added.
The Dow Jones Industrial Average .DJI rose 44.81 points,
or 0.15%, to 29,483.23, the S&P 500 .SPX gained 14.08 points,
or 0.39%, to 3,581.87 and the Nasdaq Composite .IXIC added
103.11 points, or 0.87%, to 11,904.71.
The Dow and S&P had been lower before the news, while tech
shares had edged higher as the new lockdowns reinforced
expectations of demand for online services. Oil prices reversed losses and edged higher in after-market
trade, after Brent LCOc1 settled down 0.3% at $44.20 per
barrel with U.S. crude CLc1 0.2% lower at $41.70.
The dollar index =USD fell 0.235%, with the euro EUR= up
0.21% to $1.1877.
The benchmark 10-year Treasury notes US10YT=RR rose 12/32
in price to yield 0.8423%, from 0.882% late on Wednesday.
POLITICAL PRESSURE
Politicians appeared pressured to act after small business
owners warned in recent days their companies might not survive
new lockdowns being prompted by the current wave of infections.
The report of talks, if confirmed, could prompt investors to
price in prospects for a stimulus bill before President-Elect
Joe Biden takes office, Moya said.
The news helped dispel the dark mood dominating markets
earlier in the day.
Stocks had broadly declined and bond prices had risen on a
weak reading for U.S. employment, with new COVID-19 restrictions
seen possibly stifling economic recovery and tempering optimism
about vaccines. The United States reported an unexpectedly large
rise in jobless claims in the week ended Nov. 14 - 742,000
compared with 711,000 the prior week and forecasts of 707,000
among economists polled by Reuters.
Positive news about possible vaccines had helped push the
MSCI World Index to a record high earlier in the week. But
investors had pulled back after countries announced record
infection rates and tougher lockdowns to curb the virus.
The MSCI benchmark for global equity markets .MIWD00000PUS
fell 0.45% to 610.11. Europe's broad FTSEurofirst 300 index
.FTEU3 dropped 0.75% to 1,496.62.
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Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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