Stocks Climb to Five-Week Highs; Bonds Gain: Markets Wrap
U.S. stocks rose to almost five-week highs as traders speculated that lawmakers will eventually provide more stimulus and corporate deal activity increased. Treasury bond yields dropped and the dollar weakened.
The S&P 500 finished up 0.8% after conflicting comments from President Donald Trump and House Speaker Nancy Pelosi whipsawed equity markets earlier in the day. Energy, utilities and financials were the biggest gainers in the benchmark index, with crude oil rallying as Hurricane Delta approached the already battered Louisiana coast.
Asian stocks looked set for a muted start as investors continued to mull the likelihood of U.S. stimulus amid an increase in deal activity. Treasuries ticked higher and the dollar slipped. Futures were little changed in Japan, and rose in Hong Kong and Australia. The S&P 500 closed higher despite conflicting comments from President Donald Trump and Nancy Pelosi that whipsawed markets earlier in the day. Crude oil climbed as Hurricane Delta approached the already battered Louisiana coast. All eyes will be on the reopening of Chinese markets Friday after a week-long holiday.
China’s crackdown on Hong Kong and new limits on overseas workers in Singapore could help Japan raise its profile as a global financial hub, despite its higher taxes, according to Japan’s new vice finance minister. “It’s impossible to make taxation levels exactly the same” as places where social security costs aren’t as high, Kenji Nakanishi said in an interview Wednesday. “But we often hear that even a small change would make a difference and the government needs to send some kind of clear message.” Prime Minister Yoshihide Suga, who took office last month and appointed Nakanishi, sees a need to make Japan more inviting for overseas financiers as part of his reform agenda. This week he said he wants to speed up efforts to cut some taxes to this end and make more business services available in English.
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