Global Stocks Erase 2020 Losses Amid US Rally
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A gauge of global equities erased its losses for the year as U.S. stocks climbed on optimism that officials will come to terms on fresh economic stimulus. Gold extended gains amid speculation interest rates will stay low for longer.
The MSCI All-Country World Index advanced for a fourth straight day as the S&P 500 rose, with Apple Inc. leading the charge as it reached a record high. Stocks got a lift in the afternoon as lawmakers pledged to keep working toward a coronavirus relief package and President Donald Trump said he could act unilaterally on some measures. The dollar slipped.
Equity gains have mounted in the past week amid better-than-forecast earnings and optimism on a coronavirus vaccine, but any hint that negotiators won’t be able to resolve differences over a new U.S. relief package has sparked jitters. The White House and congressional Democrats are up against a self-imposed Aug. 7 deadline to strike a deal as data Aug. 6 showed almost 1.2 million unemployment claims.
“Anything that we can do to continue to provide a bridge to people as we get through this crisis is going to be really important,” said Chuck Cumello, president and CEO of Essex Financial Services. “The U.S. consumer is driving two-thirds of the economy.”
Elsewhere, mining and energy producers were among the laggards as European stocks slumped. Turkey’s lira tumbled to a record against the dollar as interventions by state banks failed to reassure markets. Gold climbed above $2,050 an ounce in a fifth straight day of gains.
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