(Updates to U.S. open, changes dateline; previous LONDON)
By Stephen Culp
NEW YORK, April 6 (Reuters) - U.S. stocks paused near the
previous session's record closing highs and Treasury yields
inched lower on Tuesday as investors took stock of recent upbeat
data and looked to the Federal Reserve for its economic outlook.
On Wall Street, stocks that stand to benefit most from a
reopening economy - cyclicals, small caps, transports - were
outperforming the broader market.
This suggests market participants are optimistic about an
economic rebound - and corporate earnings - fueled by vaccine
distribution, stimulus and a robust infrastructure bill being
debated in Washington.
"Investors are taking a breather and looking ahead to
earnings, and that's a pattern that we see almost every earnings
season," said Oliver Pursche, president of Bronson Meadows
Capital Management in Fairfield, Connecticut.
"The economic picture has greatly improved in the last three
months," Pursche added. "There's a general sense globally that
things are improving and will get better rapidly."
Friday's blockbuster U.S. jobs report was followed on Monday
by PMI data showing the services sector's fastest expansion on
record. This was followed by a PMI report from China that
confirmed activity in its services sector is accelerating.
The U.S. Federal Reserve is expected to release the minutes
from its last monetary policy meeting on Wednesday, and market
participants will parse it for any changes to the central bank's
economic outlook.
"(Investors are) going to be looking for little change, a
continued supportive and accommodative Fed that sees little risk
from inflation and ideally an improved outlook on economic
growth," Pursche said.
The Dow Jones Industrial Average .DJI fell 13.63 points,
or 0.04%, to 33,513.56, the S&P 500 .SPX gained 4.8 points, or
0.12%, to 4,082.71 and the Nasdaq Composite .IXIC added 34.25
points, or 0.25%, to 13,739.85.
European markets returned after Monday's holiday to follow
Wall Street to record highs as data indicated a swift economic
recovery from the global health crisis. The pan-European STOXX 600 index .STOXX rose 0.74% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.31%.
Emerging market stocks rose 0.59%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.66%
higher, while Japan's Nikkei .N225 lost 1.30%.
U.S. Treasury yields dipped, with 5-year notes leading the
decline, on investor views that market pricing based on an
earlier-than-expected tightening by the Federal Reserve was too
aggressive.
Benchmark 10-year notes US10YT=RR last rose 16/32 in price
to yield 1.6649%, from 1.72% late on Monday.
The 30-year bond US30YT=RR last rose 26/32 in price to
yield 2.3222%, from 2.363% late on Monday.
The dollar reversed early gains against a basket of world
currencies, extending a soft start to April for the greenback.
The dollar index .DXY fell 0.65%, with the euro EUR= up
0.22% to $1.1837.
The Japanese yen strengthened 0.39% versus the greenback at
109.77 per dollar, while Sterling GBP= was last trading at
$1.3852, down 0.32% on the day.
Crude oil prices were lifted by strong data from China,
partly recovering from the previous session's losses as
pandemic-related volatility dominates the market. U.S. crude CLcv1 rose 3.55% to $60.73 per barrel and Brent
LCOcv1 was last at $64.10, up 3.14% on the day.
Gold prices touched their highest level in more than a week,
benefiting from the soft dollar and lower Treasury yields.
Spot gold XAU= added 0.8% to $1,742.66 an ounce.
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Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
Credit Suisse troubles https://tmsnrt.rs/3cSklUJ
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