Stocks, oil surge as yen falls back again

Tue May 10, 2016 4:24pm EDT
 
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By Lewis Krauskopf

NEW YORK (Reuters) - Stock markets around the world rallied on Tuesday, helped by solid corporate earnings reports and higher oil prices supporting energy shares, while the yen again retreated sharply against the dollar.

MSCI's broad gauge of global stocks .MIWD00000PUS climbed nearly 1.1 percent, its best session in about a month. The three major U.S. indexes each ended up about 1.3 percent and the pan-European FTSEurofirst 300 .FTEU3 index advanced 0.9 percent.

The yen fell against the dollar for a second day as a Japanese economic adviser reiterated that the country was prepared to intervene in currency markets.

Against a basket of currencies, the dollar .DXY edged up 0.2 percent.

The Dow Jones industrial average .DJI rose 222.44 points, or 1.26 percent, to 17,928.35, the S&P 500 .SPX gained 25.7 points, or 1.25 percent, to 2,084.39 and the Nasdaq Composite .IXIC added 59.67 points, or 1.26 percent, to 4,809.88.

Equities globally benefited from investors' belief that the U.S. Federal Reserve is less likely to raise interest rates in June in light of recent weaker-than-expected economic data, said Peter Kenny, senior market strategist at Global Markets Advisory Group in Berkeley Heights, New Jersey.

"Markets are banking on an unchanged interest rate narrative, not only in June but for the foreseeable future, meaning certainly to the end of the summer," Kenny said.

The S&P 500 tallied its best day in two months, helped by Amazon (AMZN.O: Quote), following a bullish analyst report, and Allergan (AGN.N: Quote), after the U.S. pharmaceutical company posted strong earnings.   Continued...

 
People walk through the lobby of the London Stock Exchange in London, Britain August 25, 2015.  REUTERS/Suzanne Plunkett/File photo