Global markets update: US stocks climb as debt default concerns ease, regional banks rally
1 min read 18 May 2023, 02:21 AM ISTS&P 500 rises 1.19%, Dow Jones Industrial Average advances 1.24%, Nasdaq Composite gains 1.28%
PremiumUS stocks climbed on Wednesday on hopes that the US can avoid a debt default and on a rally in regional banks.
Three major stock indices surged over 1%. The S&P 500 rose 48.85 points, or 1.19%, at 4,158.75. The Dow Jones Industrial Average advanced 410.64 points, or 1.24%, at 33,422.78. The Nasdaq Composite gained 157.51 points, or 1.28%, at 12,500.57.
As the US is nearing June 1 deadline, President Joe Biden said he’s confident “America will not default."
Regional banks rally was led by Western Alliance Bancorp a day after the lender said its deposits grew by more than $2 billion in the quarter ended May 12.
Western Alliance Bancorp jumped 10.19% at $34.81.
The yield on 10-year treasury rose to 3.57% from 3.54% late Tuesday. The yield on 2-year treasury increased to 4.16% from 4.08%.
Currencies
The US dollar rose to 137.61 Japanese yen from 136.32. The euro fell to $1.0838 from $1.0868.
Canada
Canadian stocks rose on Wednesday, as energy and financial shares jumped. The Toronto Stock Exchange's S&P/TSX composite index added 54.36 points, or 0.3%, at 20,296.43.
Europe
European shares fell on Wednesday on worries about the United States’ debt ceiling.
The pan-European STOXX 600 index declined 0.2%.
In Britain, FTSE 100 fell 0.4% at 7,723.23. Germany’s DAX added 0.3% at 15,951.30. France’s CAC 40 slipped less than 0.1% at 7,399.44.
Asia
Asian markets closed mixed on Wednesday.
Hong Kong’s Hang Seng index fell 1.1% at 19,758.59. China’s Shanghai Composite lost 0.2% at 3,284.23. In South Korea, the benchmark Kospi rose 14.42 points, or 0.58%, at 2,494.66.
Japan’s Nikkei 225 rose 0.8% at 30,093.59.
Australia’s S&P/ASX 200 index fell as much as 0.5% at 7,199.20. New Zealand’s benchmark S&P/NZX 50 index ended marginally higher at 11,951.6.
Energy prices
Brent crude for July delivery rose $2.05 to $76.96 a barrel on Wednesday. US crude oil benchmark for June delivery rose $1.97 to $72.83 a barrel.
Natural gas for July delivery fell 1 cent to $2.37 per 1,000 cubic feet.
Bullion
Gold for June delivery fell $8.10 to $1,984.90 an ounce. Silver for July delivery rose 1 cent to $23.90 an ounce.
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