Stocks climbed as the global bond rout faded, with volatility showing no signs of abating amid Friday’s $2 trillion options expiration and another raft of corporate earnings.
(Bloomberg) — Stocks climbed as the global bond rout faded, with volatility showing no signs of abating amid Friday’s $2 trillion options expiration and another raft of corporate earnings.
The S&P 500 pushed higher amid several twists and turns.
Two-year yields fell, while 10-year rates traded off session highs. The Japanese yen rebounded in an apparent wave of dollar sales.
Equity funds are still seeing inflows despite deeply pessimistic sentiment, with “final capitulation” not yet here, said Bank of America Corp.
Global stock funds had inflows of $9.2 billion in the week through Oct. 19, according to a note from the bank citing EPFR Global data.
“The equity market is trying to form a bottom to get to the last leg of the bear market,” said David Donabedian, chief investment officer of CIBC Private Wealth US.
“It feels like a two-way market right now. We have a tug of war going on between the skeptics and those who think it is time to own equities.”
He noted that the Fed is not done raising rates and valuations are still not as low as he would expect to see at the bottom of a bear market.
“We are just not there yet.”
Some of the main moves in markets:
Stocks
- The S&P 500 rose 1% as of 11:47 a.m. New York time
- The Nasdaq 100 rose 0.8%
- The Dow Jones Industrial Average rose 1.1%
- The Stoxx Europe 600 fell 0.6%
- The MSCI World index rose 0.5%
Currencies
- The Bloomberg Dollar Spot Index fell 0.5%
- The euro rose 0.4% to $0.9823
- The British pound was little changed at $1.1228
- The Japanese yen rose 1.9% to 147.32 per dollar
Cryptocurrencies
- Bitcoin rose 0.2% to $19,065.25
- Ether rose 0.3% to $1,285.96
Bonds
- The yield on 10-year Treasuries advanced one basis point to 4.24%
- Germany’s 10-year yield advanced three basis points to 2.43%
- Britain’s 10-year yield advanced 18 basis points to 4.09%
Commodities
- West Texas Intermediate crude rose 0.5% to $84.95 a barrel
- Gold futures rose 0.9% to $1,651.60 an ounce
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