GLOBAL MARKETS-U.S. stocks close higher, oil jumps as fiscal aid talks progress

(Updates to market close)
By Stephen Culp
NEW YORK, Oct 8 (Reuters) - Wall Street advanced and crude
prices surged on Thursday as reports continued to surface of new
developments in pandemic relief negotiations in Washington.
All three major U.S. stock indexes gained ground, with
smaller cap stocks handily outperforming their larger
counterparts.
U.S. House Speaker Nancy Pelosi, while expressing confidence
that she would be able to reach an agreement with Treasury
Secretary Steven Mnuchin, said on Thursday legislation to help
airline companies survive the pandemic could only move through
Congress with guarantees that lawmakers would work on "a fuller
bill." White House adviser Larry Kudlow said the Trump
administration would like to see "standalone" bills to provide
additional unemployment assistance and extend the Paycheck
Protection Program, but also told Fox News that the economic
recovery did not depend on a stimulus deal.
Senate Leader Mitch McConnell, meanwhile, warned there
remain "vast differences" between Democrats and Republicans
regarding the size of a new round of fiscal aid.
"Today's back and forth is a microcosm of we've been seeing
the last couple of weeks," said Ryan Detrick, senior market
strategist at LPL Financial in Charlotte in North Carolina. "The
door seems to be open on a deal then quickly closes."
"But at least the two sides are still talking, leaving a
chance for some type of resolution, potentially before
election," Detrick added.
Democratic nominee Joe Biden has been advancing in the polls
ahead of the Nov. 3 election.
"The chance of a blue wave is increasing and one could say
the markets would like that," Detrick said. "Equity markets do
not want a contested election and Biden's lead growth puts a
little water on the fire."
The U.S. Labor Department reported that jobless claims
remain well above the highest levels reached at the nadir of the
Great Recession, suggesting the labor market recovery could be
stalling. The Dow Jones Industrial Average .DJI rose 122.05 points,
or 0.43%, to 28,425.51, the S&P 500 .SPX gained 27.38 points,
or 0.80%, to 3,446.83 and the Nasdaq Composite .IXIC added
56.38 points, or 0.5%, to 11,420.98.
European stocks joined the world rally as the signs of
movement in coronavirus aid talks lifted the global mood.

The pan-European STOXX 600 index .STOXX rose 0.78% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.79%.
Treasury yields retreated and the yield curve flattened
following weaker-than-expected economic data and amid persistent
uncertainty surrounding coronavirus relief talks. Benchmark 10-year notes US10YT=RR last rose 6/32 in price
to yield 0.7652%, from 0.785% late on Wednesday.
The 30-year bond US30YT=RR last rose 18/32 in price to
yield 1.5642%, from 1.589% late on Wednesday.
Crude prices topped $43 per barrel as supply was pressured
by hurricane-related shutdowns, an ongoing oil worker strike in
Norway, and possible OPEC production cuts. U.S. crude futures CLcv1 gained 3.10% to settle at $41.19
per barrel, while Brent settled at $43.34 per barrel, advancing
3.22% on the day.

The dollar was little changed against a basket of world
currencies as market participants awaited further stimulus
developments. The dollar index .DXY fell 0.01%, with the euro EUR=
unchanged at $1.176.
The Japanese yen weakened 0.02% versus the greenback at
106.01 per dollar, while sterling GBP= was last trading at
$1.2934, up 0.12% on the day.
Election uncertainty and pandemic relief optimism also
boosted gold. Spot gold XAU= added 0.3% to $1,893.54 an ounce.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Stocks versus COVID https://tmsnrt.rs/2GCoYoa
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