World shares inch up on Wall St; trade worries boost safety assets

Reuters  |  NEW YORK 

By Laila Kearney

Wall Street rose a day after slumping on the U.S.-trade dispute and financial stocks found favor after a 13-day losing streak.

The Dow Jones Industrial Average <.DJI> rose 98.46 points, or 0.41 percent, to 24,216.05, the 500 <.SPX> gained 16.68 points, or 0.62 percent, to 2,716.31, and the <.IXIC> added 58.60 points, or 0.79 percent, to 7,503.68.

The 500 earlier in the day seesawed between gains and losses, stung by a drop in the health sector after announced the acquisition of online pharmacy PillPack, sparking a selloff in shares of drugstore chains, drug distributors and pharmacy benefit managers.

An escalating trade fight between the and major partners, including China, the and Canada, also continued to exert pressure.

"There's been inconsistency out of the as to what the (trade) policy actually is," said Brian Battle, at in "We're all just waiting and tapping our foot to see the actual policy."

European shares and Chinese shares reacted to plans outlined late on Wednesday by U.S. and to clamp down on Chinese acquisitions of sensitive American technologies.

After clawing back some ground on Wednesday, the pan-European <.STOXX> and Germany's trade-sensitive DAX <.GDAXI> were down 0.8 and 1.4 percent respectively, with technology and carmakers taking the biggest hits.

Asian shares dropped to a nine-month trough and MSCI's emerging market index <.MSCIEF> - which includes other hard-hit countries, including Mexico, Brazil, and - was at its weakest in almost a year.

MSCI's gauge of stocks across the globe <.MIWD00000PUS> was up 0.08 pct.

and German Bund yields remained near one-month lows as investors moved into bonds for the guaranteed returns stocks cannot offer.

The yield curve between two-year and 10-year notes traded just above the low of 32 basis points reached on Wednesday, which was the flattest since 2007.

A battle over migration policy in Germany's coalition government additionally boosted demand for safe-haven debt, raising concerns that the euro zone's biggest could be headed for snap elections.

The <.DXY>, which measures the greenback against a basket of six currencies, rose against the safer Japanese yen in the absence of trade-related rhetoric for the day.

The dollar was up 0.26 percent against the yen, at 110.54 yen.

Gold fell to its lowest level in more than six months on mounting pressure from trade disputes, the expectation of higher U.S. interest rates and a stronger dollar.

A strong greenback makes dollar-priced gold costlier for non U.S. investors and while falling equities, seen as risky assets, usually help safe-haven gold, they have failed to do so this time.

climbed, with U.S. crude hitting a 3-1/2-year high, bolstered by supply concerns due to U.S. sanctions that could cause a large drop in crude exports from

Intermediate crude futures rose 69 cents, nearly 1 percent, to settle at $73.45 a barrel. It reached $74.03 earlier in the session, the highest since Nov. 26, 2014.

Brent crude futures rose 23 cents to settle at $77.85 a barrel.

(Reporting by Laila Kearney; Additional reporting by Marc Jones, Christopher Johnson, Maytaal Angel, Helen Reid, and Abhinav Ramnarayan in London, and Saqib Iqbal Ahmed, Stephanie Kelly and Karen Brettell in New York; Editing by and Leslie Adler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 29 2018. 03:16 IST