(Updates to afternoon)
By Stephen Culp
NEW YORK, Oct 8 (Reuters) - U.S. stock indexes touched
one-month highs and crude prices gained ground on Thursday amid
signs of progress in fiscal aid negotiations.
U.S. House Speaker Nancy Pelosi said emergency aid for
commercial airlines was a matter of national security and could
only pass through Congress with assurances that negotiations
will continue toward crafting a broader pandemic relief package.
And while 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, Senate Leader Mitch McConnell warned there
remain "vast differences" between Democrats and Republicans
regarding the size of a more comprehensive deal.
"We're seeing the broad market lift and certainly cyclical
sectors are doing well," said Tim Ghriskey, chief investment
strategist at Inverness Counsel in New York. "That shows that
the market is anticipating some kind of package."
Democratic nominee Joe Biden has been advancing in the polls
ahead of the Nov. 3 election, now less than a month away.
"Overall, the market seems very accepting of a potential
Biden win and Democratic gains in the Senate," Ghriskey added.
"The market usually tends to prefer gridlock where change
happens slowly, but in the short-term you'd get a stimulus bill
if there's a clean sweep by either party."
The U.S. Labor Department reported that jobless claims,
while edging lower last week, remain stubbornly high and well
above the highest levels reached at the nadir of the Great
Recession, suggesting recovery of the labor market could be
stalling. The Dow Jones Industrial Average .DJI rose 102.15 points,
or 0.36%, to 28,405.61, the S&P 500 .SPX gained 25.62 points,
or 0.75%, to 3,445.07 and the Nasdaq Composite .IXIC added
57.04 points, or 0.5%, to 11,421.64.
European stocks joined the world rally, hitting near
three-week highs as 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
0.76%.
Emerging market stocks rose 0.93%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.84%
higher, while Japan's Nikkei .N225 rose 0.96%.
Treasury prices firmed and the yield curve flattened a bit
amid weaker-than-expected economic data. Benchmark 10-year notes US10YT=RR last rose 6/32 in price
to yield 0.7669%, from 0.785% late on Wednesday.
The 30-year bond US30YT=RR last rose 17/32 in price to
yield 1.5656%, from 1.589% late on Wednesday.
Crude prices topped $43 per barrel as output shutdowns
related to hurricanes in the Gulf of Mexico and an ongoing oil
worker strike in Norway, and possible OPEC production cuts
pressured supply. 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 inched lower against a basket of world following
Pelosi's remarks.
The dollar index .DXY fell 0.03%, with the euro EUR=
down 0.03% to $1.1757.
The Japanese yen weakened 0.04% versus the greenback at
106.03 per dollar, while Sterling GBP= was last trading at
$1.2933, up 0.12% on the day.
Election uncertainty and pandemic relief optimism also
lifted gold. Spot gold XAU= added 0.3% to $1,892.01 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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