GLOBAL MARKETS-Wall Street closes higher on U.S. stimulus hopes, gold spikes and dollar drops

(New throughout, updates prices, market activity and comments
to market close)
By Stephen Culp
NEW YORK, Oct 9 (Reuters) - International stocks rose on
Friday, with all three major Wall Street indexes posting weekly
gains as investors grew more hopeful the U.S. government would
provide additional economic stimulus.
Gold jumped and the dollar dropped as investors focused on
the probability of forthcoming U.S. coronavirus relief.
Wrangling in Washington over pandemic aid has dominated
global markets this week, and although U.S. House Speaker Nancy
Pelosi and Treasury Secretary Steven Mnuchin failed to hammer
out a deal, talks will continue despite Republican doubts.
Trump said in an interview on Friday that he wants to see a
bigger stimulus package than either Democrats or Republicans
were offering, a reversal from his threats at the beginning of
the week that he would halt negotiations. "We're in one of those periods where Washington is driving
Wall Street, be it either the presidential election or fiscal
stimulus and today it was about the stimulus," said David
Carter, chief investment officer at Lenox Wealth Advisors in New
York.
"Markets are up on the hope that more fiscal stimulus is
coming but its really just hope, as communication from
Washington has become somewhat erratic," Carter added.
Trump expressed a desire to return to the campaign trail a
week after announcing he had contracted COVID-19, but aides said
he was unlikely to hold in-person events until Monday at the
earliest. 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. "Biden is rising in the polls, creating both hope that
fiscal stimulus is coming and less of a chance of a contested
election which could be a real problem for markets," Carter
said.
Next week, investors' attention will shift to reporting
season, and 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 161.39 points,
or 0.57%, to 28,586.9, the S&P 500 .SPX gained 30.3 points, or
0.88%, to 3,477.13 and the Nasdaq Composite .IXIC added 158.96
points, or 1.39%, to 11,579.94.
European stocks posted a second straight week of gains on
upbeat earnings forecasts, while investors paid close attention
to fiscal aid talks in the United States. The pan-European STOXX 600 index .STOXX rose 0.55% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.84%.
Yields on Treasury bonds ticked higher in afternoon trading
amid improving risk appetite. Benchmark 10-year notes US10YT=RR last fell 2/32 in price
to yield 0.772%, from 0.767% late on Thursday.
The 30-year bond US30YT=RR last fell 4/32 in price to
yield 1.571%, from 1.566% late on Thursday.
Crude prices fell more than 1% after an offshore oil worker
strike in Norway ended eased supply pressures, even as Hurricane
Delta forced U.S. energy companies to cut output. U.S. crude futures CLcv1 settled at $40.60 per barrel,
down 1.43%, while Brent LCOcv1 fell 1.13% to settle at $42.85
per barrel.
The dollar dropped against a basket of world currencies on
fiscal relief optimism and the growing likelihood of a Biden
victory. The dollar index .DXY fell 0.58%, with the euro EUR= up
0.54% to $1.1821.
The Japanese yen strengthened 0.40% versus the greenback at
105.63 per dollar, while Sterling GBP= was last trading at
$1.304, up 0.83% 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 1.8% to $1,927.96 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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