The US dollar ticked up from its lowest level in two years and global stocks edged higher after upbeat economic reports and signs corporate earnings season was not as bleak as forecast bolstered market sentiment.
Stock and crude oil markets dropped on Thursday after data laid bare the enormous damage the coronavirus pandemic has wrought on the US and German economies, and raised fears that a recovery may be stalling.
The dollar weakened against the euro and pound on Wednesday, sending sterling above $1.30 for the first time since March, after the Federal Reserve ramped up emergency measures to boost dollar liquidity.
The price of gold came within striking distance of hitting $2,000 for the first time on Tuesday but its rally lost momentum as the dollar’s sell-off eased and traders turned their attention to the upcoming US central bank meeting.
US and European stocks rose on Tuesday after EU leaders struck an agreement for a €750bn pandemic recovery fund and a top Republican in the Senate signalled a willingness to approve additional stimulus.
An advance on Wall Street that had sent stocks to a five-week intraday high on Monday was cut short in a volatile trading session ahead of quarterly results that will offer investors insight into the effects of the coronavirus crisis on the fortunes of corporate America.
A fresh burst of demand for US government bonds pushed yields on 10- and 30-year debt down this week to the lowest level since states began loosening lockdown restrictions, as a rise in deaths linked to the pandemic raised concerns over reopening the economy too soon.
Equity markets climbed after a strong US jobs report fuelled hopes that the world’s largest economy is on track for a recovery from the damage caused by the coronavirus pandemic despite a recent rollback in the easing of lockdowns.
Wall Street stocks recorded the best quarter in more than two decades amid a broad rally in global financial markets ignited by a barrage of central bank stimulus and hopes of a forceful economic recovery.