- MSCI gauge of world stocks touches intraday record high
- Brent, U.S. crude bounce from 2 pct intraday drops
- Dollar index holds most of Friday's sharp gains
A measure of equity markets across the world climbed to a record high on Monday, boosted by gains in Asia, while U.S. and European markets were little changed, with U.S. energy shares capping gains on the benchmark S&P 500 index.
Oil prices fell and have been pressured after last week climbing to their highest since May, as OPEC exports hit a record peak last month and output rose to a 2017 high. However, both U.S. crude and Brent settled far above their session lows.
Strong economic data globally and healthy corporate earnings in the United States have supported equities, with the Dow industrials closing Monday at a ninth consecutive record high.
The average daily gain over those nine sessions was 0.26 percent.
“Today there’s a lack of conviction either way. There’s no reason to be a seller yet and there’s no reason to be a buyer at these levels as earnings season winds down and you don’t have much in the way of economic news this week,” said Robert Pavlik, chief market strategist at Boston Private Wealth in New York.
The Dow Jones Industrial Average rose 25.61 points, or 0.12 percent, to end at 22,118.42, the S&P 500 gained 4.08 points, or 0.16 percent, to 2,480.91 and the Nasdaq Composite added 32.21 points, or 0.51 percent, to 6,383.77.
MSCI’s gauge of stocks across the globe gained 0.27 percent to close at a record high. The pan-European FTSEurofirst 300 index lost 0.12 percent.
Emerging market stocks gained 0.76 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.55 percent higher, while Japan’s Nikkei rose 0.52 percent.
OIL MARKET EYES OPEC
Oil prices fell, with energy markets focused on comments from OPEC and non-OPEC officials meeting in Abu Dhabi to discuss ways to boost compliance with a deal to cut output.
Adding to supply concerns, production at Libya’s largest field was returning to normal after a brief disruption by armed protesters.
U.S. crude fell 0.5 percent to $49.33 per barrel and Brent was last at $52.27, down 0.29 percent on the day. Both fell 2 percent at one point during the session.
Oil prices have been pressured as “producers meeting in Abu Dhabi have been slow to assure the market that compliance with this year’s production cuts will be improved,” Tim Evans, Citi Futures’ energy futures specialist, said in a note. He added that “adherence to the limits has actually been quite strong by historical standards.”
In currency markets, the U.S. dollar edged lower but held onto most of Friday’s gains as investors awaited inflation data this week that may signal a turnaround in the greenback’s weakness for most this year.
“We have a view that the U.S. dollar is due for some mild corrective strength in the near term and we see some confirming price action from some of the key G10 currency pairs,” said Erik Nelson, currency strategist at Wells Fargo Securities in New York.
“Some of these dollar-bloc currencies are starting to show signs of maybe rolling over in the near-term.”
The dollar index fell 0.12 percent, with the euro up 0.22 percent to $1.1794. The index had gained 0.76 percent on Friday, the most for any single session since Dec. 15.
The Japanese yen weakened 0.06 percent versus the greenback at 110.75 per dollar, while sterling was last trading at $1.3034, down 0.01 percent on the day.
In the absence of major U.S. economic data, the Treasuries market was little changed and focused on a heavy schedule of government and corporate bond issues this week, which could push yields higher.
Benchmark 10-year U.S. Treasury notes were last up 4/32 in price to yield 2.2548 percent, from 2.269 percent late on Friday.
The 30-year bond was last up 6/32 in price to yield 2.8344 percent, from 2.844 percent.
Spot gold was little changed at $1,257.76 an ounce. U.S. gold futures fell 0.09 percent to $1,263.50.
Copper rose 0.73 percent to $6,418.50 a tonne.