By Jamie McGeever
ORLANDO, Florida, Oct 20 (Reuters) – US stocks rose on Tuesday, shrugging off global weakness earlier in the day as oil prices pulled back sharply from six-month highs, a reversal that also pushed longer-dated Treasury yields lower. Shares in SpaceX spiked 3% in post-market trading after the release of third-quarter results.
In my column today, I suggest emerging markets may be more resilient to rising US interest rates and market volatility than they have been for years. They’re not immune, of course, but higher yields, manageable debt, and stronger policy credibility will help them weather any incoming storms.
Today’s Key Reads
• France to deploy troops, admits to failures over weekend unrest
• Europe’s earnings boom widens beyond energy and AI
• Markets’ squeal is music to Fed ears — but still too faint: Mike Dolan
• South Korean firm’s debut plunge adds to investor concerns about AI spending
• China leaves loan rates steady for 17th consecutive month
• Today’s Key Market Moves STOCKS: Asia in the red: South Korea -3.5%, Japan -1.5%. Europe slips, France lags. Americas in the green: Brazil +1.5%, Dow +1%, S&P 500 +0.3%, Nasdaq flat, small-cap Russell 2000 index +1.7%, biggest rise since August 4.SECTORS/SHARES: Nine sectors on the S&P 500 rise, two fall. Healthcare +2.3%, comms services -0.9%. Biggest gainers on S&P 500 Equifax, Hasbro +11%; biggest decliner General Motors -7%. Netflix -6% after the bell.FX: Dollar down broadly. Biggest G10 climbers are sterling to five-week high, Canadian dollar to one-month high. Colombian peso biggest decliner.BONDS: Japanese yields slide, French yields dip but spread over bunds has widest close since 2011. French CDS highest since 2013. US yields -5 bps at long end, +2 bps at short end.COMMODITIES/METALS: Oil hits six-month high, then closes lower: Brent -0.7%, WTI -1.8%.
Today’s Talking Points:
Crude to go?
Markets and economies around the world are taking the global energy shock in their stride, but if that’s because they’re expecting prices to fall any time soon, they may have to readjust. Oil prices closed lower on Tuesday, but not before Brent and WTI crude futures clocked fresh six-month peaks — Brent nudged $112/barrel and WTI rose above $110.
It seems a lifetime ago, but when the US and Iran signed the MOU in June, an end to the war, opening of the Strait of Hormuz, and replenishing of global energy supplies seemed imminent. WTI’s year-on-year price change even briefly turned negative. But now, WTI is nearly 80% more expensive than it was a year ago and inflationary pressures, although supply-driven, are increasingly difficult for policymakers to look through. Will today’s reported Iran-Pakistan talks open the door to a US-Iran detente?
