NEW YORK (Reuters) – The world's stock markets began in November with a broad rally following a brutal October, fueled by strong corporate profits and signs that a trade war between economic giants, China and the US, could be contained.
Traders work on November 1, 2018 in New York, USA, on the New York Stock Exchange (NYSE). REUTERS / Brendan McDermid
The MSCI All-Country World Index, which tracks stock markets in 47 countries, climbed 1.1 percent.
October was the worst month since May 2012 as the stock market slumped 7.5 percent due to factors such as trade wars and concerns over global economic growth and higher US interest rates.
Investor sentiment was strengthened by comments from US President Donald Trump on Thursday, who said he had a "very good" conversation with Chinese President Xi Jinping on trade and North Korea and intends to face up to an upcoming G-20. To hit the summit.
"In recent days, we've seen the pressure valve sell off, which is certainly helpful from a sentiment perspective," said Michael Antonelli, managing director of institutional sales for Robert W. Baird in Milwaukee.
The Dow Jones Industrial Average rose 264.98 points or 1.06 percent to 25,380.74, the S & P 500 increased 28.63 points or 1.06 percent to 2,740.37 and the Nasdaq Composite 128.16 Points or 1.75 percent to 7,434.06.
The Europe-wide STOXX 600 Index rose 0.41 percent.
The pound extended its rally on Thursday after the Bank of England held interest rates and hinted that future rate hikes would be slightly faster if Britain's exit from the European Union went smoothly.
The advance of sterling pushed the dollar from its recent peak. The dollar index, which tracks the greenback against six major currencies, fell 0.87 percent, with the euro rising 0.88 percent to $ 1.1409.
The index rose to 97.20 over 16 months, according to a US ADP employment report, showing that private sector wages rose most in eight months in October.
The dollar benefited from robust economic data, including last week's gross domestic product growth rates, which showed that the US economy slowed less than expected in the third quarter.
"We have a reasonably risk-averse market and with the new month we have sold a few dollars," said Kit Juckes, strategist at Societe Generale.
The 10-year benchmark index rose 5/32 lately to reach 3.1398 percent, compared with 3.159 percent late Wednesday.
Oil prices fell on concerns over weaker global demand and the record supply of the world's largest oil producers. [O/R]
US crude oil prices fell 2.74 percent to $ 63.52 a barrel and Brent was recently $ 72.75, down 3.05 percent.
Reporting by David Randall; Editing by Clive McKeef