Wednesday, U.S. shares extended their winning streak to a fourth session. Investors were encouraged by better-than-expected data on private jobs and signs of reducing social unrest.
The Dow Jones industrial average rose 527 points (+ 2.1%) to 26269, the S&P 500 rose 42 points (+ 1.4%) to 3122, and the Nasdaq 100 rose 47 points (+ 0.5%) to 9704.
Banks (+ 5.21%), cars & components (+ 4.92%) and consumer goods & apparel (+ 4.58%) achieved the best results.
Simon Property Group Inc (SPG + 14.86%), Macerich Company (MAC + 14.23%), Coty (COTY + 13.37%, Boeing Co (BA + 12.95%), Macy’s (M + 12, 93%) and United Airlines (UAL +12.50)%) were top winners.
On the technical side, approx. 46.4% (44.6% in the previous session) of the S&P 500 index stocks above their 200-day moving average, and 95.8% (94.9% in the previous session) were above their 20-day moving average.
The Automatic Data Processing (ADP) Employment Report showed a reduction of 2.760 million private jobs in May, much better than -9,000 million expected and -19.557 million in April.
U.S. official data showed that factory orders fell 13.0% over the month of April (-13.4% expected), and durable goods orders (final unloading) fell 17.7% (-17.2% expected).
Later today, the original unemployment claims (a decrease to 1.843 million expected), continuing claims (a decrease to 20.050 million expected) and trade balance (a deficit of $ 49.2 billion expected in April) are reported.
Meanwhile, the U.S. the government said it will prevent Chinese airlines from flying into the country in response to China’s decision to ban the U.S. carriers.
European stocks experienced another beef gain session, with the Stoxx Europe 600 index rising 2.5%. Germany’s DAX jumped 3.9%, the UK’s FTSE 100 rose 2.6% and France’s CAC won 3.4%.
Assets in safe harbor fell in prices amid growing market optimism. U.S. Treasury prices fell further as the benchmark 10-year Treasury yield rose to 0.761% from 0.679% Tuesday. The spot gold price fell $ 26.00 (-1.5%) to $ 1,698 which had a two-day decline.
Oil prices were higher charged by reports that Saudi Arabia and Russia have agreed to extend a production cut deal through July. U.S. WTI crude oil futures (July) added 1.3% to $ 37.29 per barrel.
On the forex front, ICE U.S. Dollar index extended its fall on Wednesday, falling 0.3% on the day to 97.31.
EUR / USD rose 0.6% to 1.1232, constituting a seven-day win frame. The German coalition parties agree on a new stimulus package of 130 billion euros. Meanwhile, official data showed that the euro area’s unemployment rates rose up to 7.3% in April (8.2% expected) from 7.1% in March, while the German unemployment rate rose to 6.3% in May (6.2 % expected) from 5.8% in April. On the other hand, the European Central Bank is expected to keep its key rates unchanged later today.