November 20, 2014 / 9:48 PM / in 3 years

GLOBAL MARKETS-Wall St rises, yen hits 7-year low

* Wall Street Dow, S&P indices at new closing highs
    * Treasuries' price gains dulled by Alibaba bond deal
    * Weak euro zone, China PMI data worry investors
    * Yen touches seven-year low vs dollar

 (Adds New York closes, late prices)
    By Michael Connor
    NEW YORK, Nov 20 (Reuters) - World stock markets slipped on
Thursday on signs the Chinese and European economies were
cooling, while Japan's yen slid to seven-year lows against the
dollar amid expectations of more Japanese stimulus.
    Wall Street stocks rose to record highs as U.S. data on
regional factory activity and the national housing market offset
worries about global demand and underscored divergent
expectations for the world's biggest economies.
    The Chinese and European data fueled price gains in U.S.
government debt.
    Oil prices rose for the first time this week.
    The MSCI index of world stocks was flat,
while a gauge of European stocks lost 0.26 percent.
    The China flash HSBC/Markit manufacturing purchasing
managers' index showed factory output contracted in the world's
second-biggest economy for the first time in six months.
.
    The private sector in Germany grew at its slowest pace in 16
months, and in France a slight pick-up was overshadowed by the
fastest drop in new orders in more than a year.
  
    The yen hit a seven-year low against the dollar 
before recovering and slid to a six-year low against the euro
. The euro last traded at $1.2545, off an
overnight three-week high of $1.2602. The yen last traded at
118.1 to the dollar.
    On Wall Street, the Dow Jones industrial average rose
33.27 points, or 0.19 percent, to 17,719.00. The Standard &
Poor's 500 Index was up 4.03 points, or 0.20 percent, at
2,052.75. The Nasdaq Composite Index was up 26.16
points, or 0.56 percent, at 4,701.87. 
    Data from the Philadelphia Federal Reserve showed factory
activity in the mid-Atlantic region grew at its fastest pace in
two decades, while industry data showed home resales jumped to
the highest in more than a year in October. 
    U.S. Treasury debt prices rose as many investors sought
safety in government bonds. Benchmark 10-year U.S. Treasury
notes were up 4/32 in price to yield 2.33 percent
from 2.36 percent late Wednesday.
    But gains were capped by an $8 billion corporate bond deal
from Chinese Internet group Alibaba, which has attracted about
$55 billion in orders. Asset managers have been selling
Treasuries to make way for Alibaba bonds.    
    Brent oil ended three days of declines and rallied
ahead of what is shaping up to be a landmark OPEC meeting next
week. Brent settled up $1.23 at $79.33 a barrel, after a session
high at $79.46. U.S. crude finished up $1 at $75.58 after
an intraday peak of $75.76. 

 (Additional Reporting by Gertrude Chavez-Dreyfuss, Barani
Krishnan and Karen Brettell in New York; Editing by Dan Grebler
and Leslie Adler)

Our Standards:The Thomson Reuters Trust Principles.
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