GLOBAL MARKETS-Wall St gains, gold jumps on stimulus likelihood

(Updates to U.S. market open, changes dateline from LONDON to
NEW YORK, changes byline)
By Stephen Culp
NEW YORK, Oct 9 (Reuters) - U.S. stocks joined their global
counterparts in the black on Friday as ongoing fiscal aid talks
and growing expectations for Democratic election victories
boosted optimism over economic stimulus.
Gold jumped and the dollar dipped as investors bet on the
increased probability of forthcoming coronavirus relief.
Wrangling in Washington over pandemic aid has dominated
markets this week, which began with President Donald Trump
halting negotiations on a comprehensive aid package, followed by
efforts to pass incremental stimulus measures.
"Aside from the market just liking more free money it feeds
the belief that stimulus will re-energize U.S. and world
economies," said Robert Pavlik, chief investment strategist at
SlateStone Wealth LLC in New York. "The question then becomes if
the market's pricing in the stimulus, what kind of letdown will
occur if it fails to materialize?"
Trump was preparing to return to the campaign trail a week
after he announced that he had contracted COVID-19. Reuters/Ipsos polls show Trump's approval rating plummeting,
with Americans steadily losing confidence in his handling of the
pandemic, while Democratic challenger Joe Biden makes gains in
several key swing states. "With a Democratic president in the White House working with
a Democratic speaker, the potential for stimulus is much
greater," Pavlik added.
Next week, investors' attention will shift from fiscal
relief and the impending election as third-quarter reporting
season begins in earnest.
Analysts now see third-quarter S&P 500 earnings, in
aggregate, falling by 21% year-on-year, according to Refinitiv.
The Dow Jones Industrial Average .DJI rose 117.86 points,
or 0.41%, to 28,543.37, the S&P 500 .SPX gained 20.12 points,
or 0.58%, to 3,466.95 and the Nasdaq Composite .IXIC added
111.51 points, or 0.98%, to 11,532.49.
European stocks advanced on upbeat retail earnings forecasts
as investors kept close watch on coronavirus relief progress in
the United States. The pan-European STOXX 600 index .STOXX rose 0.49% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.64%.
Emerging market stocks rose 0.71%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.53%
higher, while Japan's Nikkei .N225 lost 0.12%.
Yields on longer-dated Treasury bonds dipped slightly as
traders took profits on positions, driving prices higher on the
safe-haven assets.
Benchmark 10-year notes US10YT=RR last rose 1/32 in price
to yield 0.7654%, from 0.767% late on Thursday.
The 30-year bond US30YT=RR last rose 1/32 in price to
yield 1.5656%, from 1.566% late on Thursday.
Oil prices fell but remained on track for their biggest
weekly gains since early June due to supply pressures stemming
from hurricane-related shutdowns and an ongoing strike of
offshore workers in Norway. U.S. crude CLcv1 fell 0.51% to $40.98 per barrel and Brent
LCOcv1 was last at $43.23, down 0.25% on the day.
The dollar dipped to a three-week low against a basket of
world currencies on fiscal relief optimism and the growing
likelihood of a Biden victory. The dollar index .DXY fell 0.53%, with the euro EUR= up
0.46% to $1.1812.
The Japanese yen strengthened 0.35% versus the greenback at
105.67 per dollar, while Sterling GBP= was last trading at
$1.2994, up 0.47% on the day.
Gold prices jumped as the increased likelihood of stimulus
pushed investors to bullion as a hedge against possible
inflation. Spot gold XAU= added 1.7% to $1,925.01 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>