Black Friday Sale! Save huge on InvestingProGet up to 60% off

GLOBAL MARKETS-Wall St rebounds, gold and bonds also higher

Published 08/30/2011, 12:49 PM
Updated 08/30/2011, 12:52 PM
NDX
-
US500
-
GC
-

* U.S. stocks rebound in follow-through to Monday's rally

* Gold, bonds, dollar up too (Updates with market rebound)

By Barani Krishnan

NEW YORK, Aug 30 (Reuters) - U.S. stocks snapped back from Tuesday's early loss, joining safe-havens gold and bonds as investors regained their risk appetite despite fundamentally bearish news on the economy.

U.S. consumer confidence hit two-year lows in August and prices of single-family homes dipped in June from May as the U.S. housing market continued to crawl along at depressed levels, data showed. [ID:nN1E77T08F] [ID:nN9E7H701O]

Wall Street shares initially fell as much as 1 percent on the consumer confidence data. But they later rebounded, following through on Monday's rally and the premise that the market may have been oversold through most of this month.

Despite a weekend hurricane in the New York City region that hampered commuting, the S&P 500 index of U.S. stocks closed up more than 2 percent on Monday.

Markets overseas also moved higher on Tuesday, catching up after a market holiday in London.

The MSCI world stocks index <.MIWD00000PUS> was up 0.1 percent after rising 0.6 percent earlier. The FTSEurofirst 300 gauge for European equities <.FTEU3> rose 1.0 percent versus 1.7 percent at its high.

"It looks like we're having some follow-through to yesterday's move, which is an indication things have gotten overdone in the past month. People are reassessing and seeing some value," said John Derrick, director of research with U.S. Global Investors in San Antonio, Texas.

U.S. stocks were mixed at midday, with the Dow Jones industrial average <.DJI> off 12.68 points, or 0.11 percent, at 11,526.57. The Standard & Poor's 500 Index <.SPX> was down 1.85 points, or 0.15 percent, at 1,208.23. The Nasdaq Composite Index <.IXIC> was up 6.45 points, or 0.25 percent, at 2,568.56.

Gold [GOL/] and U.S. Treasuries [US/] remained up on concerns over the U.S. and global economies.

The dollar <.DXY> [USD/] rose on the back of the euro's weakness over Greece's debt problems. (Additional reporting by Amanda Cooper, Anirban Nag, Atul Prakash and Naomi Tajitsu in London; Editing by Dan Grebler)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.