U.S. Stocks Extend Gains After Rally as Gold, Oil Tumble
By Stephen Kirkland and Lu Wang - Oct 11, 2013
U.S. shares rallied for a second day following the biggest jump since January and gold plunged to a three-month low as lawmakers discussed a potential agreement to extend the nation’s borrowing authority. Treasuries climbed while the yen weakened and oil slid.
The Standard & Poor’s 500 Index added 0.5 percent to 1,700.21 at 1:22 p.m. in New York after jumping 2.2 percent yesterday. The Stoxx 600 Europe Index gained 0.4 percent and the benchmark index for emerging markets extended its two-day gain to 1.8 percent. U.S. 10-year Treasury yields lost 1.2 basis points to 2.67 percent while the dollar and yen weakened against most major peers. Corn slid to a three-year low on concern demand may shrink if the government scales back the biofuel mandate. Gold futures fell 2.1 percent to $1,269.20 an ounce, while oil lost 1.6 percent on forecasts for rising North American production.
U.S. Democrats and Republicans were moving toward an agreement to extend the nation’s borrowing authority before an Oct. 17 deadline even as they remained at odds over terms for ending a partial government shutdown. JPMorgan Chase & Co. and Wells Fargo & Co. started the earnings season for banks. Confidence among American consumers fell to a nine-month low in October amid the partial government shutdown and debt-ceiling debate.
‘Market Volatility’
“We continue to look at the overall situation in Washington and see how that’s evolving,” Cam Albright, director of asset allocation at Wilmington Trust Investment Advisors said in a phone interview from Wilmington. His firm oversees about $20 billion. “I suspect we may still be at least several days away from getting any sort of final resolution and it may create some market volatility as we go forward.”
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http://www.bloomberg.com/news/2013-10-10/u-s-futures-slip-amid-debt-talks-as-dollar-pares-gains.html
