Wall Street stocks posted their second straight daily gain on Wednesday, with robust corporate earnings and renewed optimism about the U.S. economic recovery fueling a risk-on rally.
Asian stocks rallied on Thursday, bonds nursed losses and oil held onto sharp gains as investors seemed to set aside virus jitters for now and looked ahead to the European Central Bank for reassurance that policy support will continue for some time.
U.S. crude stockpiles unexpectedly rose for the first time in nine weeks at a time when rising Covid-19 infections threaten the demand outlook, according to a report from the API.
Gold was down on Wednesday morning in Asia. The dollar strengthened and fears about the recent surge in COVID-19 cases involving the Delta variant also eased, thus increasing investors’ risk appetite.
The dollar was up on Wednesday morning in Asia but eased slightly from multi-month peaks. Recent risk aversion that gave the greenback a boost ebbed, and selling was light ahead of the European Central Bank (ECB)’s latest policy decision that kept the euro pinned down.
The S&P 500 rebounded Tuesday, as investors took advantage beaten down travel-related stocks and financials following a rout the previous day.