* U.S. stocks end higher
* Chinese blue chips earlier jump 3.5%, most in a day since
2022
* Chinese authorities ramp up market support
NEW YORK, Feb 6 (Reuters) –
Global stock indexes edged up on Tuesday while U.S. Treasury
yields eased as investors looked for more clues on how soon the
Federal Reserve may start cutting interest rates.
Overnight, Beijing ramped up efforts to put a floor under
its stock market, boosting Chinese blue-chip stocks more than
3%. In New York trading, the iShares China large-cap
exchange-traded fund rallied as well as the Golden
Dragon China index.
The U.S. dollar weakened slightly but stayed close to its
highest level in nearly three months in the wake of recent
strong economic data and the Fed’s recent hawkish stance on
rates.
Traders have pushed back expectations of the Fed’s first
rate cut to May, after previously pricing in a likely rate
reduction in March.
“Now traders are wondering if instead of whether we’ll
get a soft landing or recession, whether we could have no
landing or re-acceleration this year,” said Matthew Weller,
global head of research at FOREX.com.
Investors on Wall Street also digested quarterly results and
forecasts from U.S. companies. Eli Lilly forecast 2024
profit above estimates.
The Dow Jones Industrial Average rose 141.24 points,
or 0.37%, to 38,521.36, the S&P 500 gained 11.42 points,
or 0.23%, to 4,954.23 and the Nasdaq Composite gained
11.32 points, or 0.07%, to 15,609.00.
The MSCI world equity index, which
tracks shares in 49 nations, gained 0.51%.
Benchmark 10-year notes fell to 4.09%, after
reaching an 11-day high of 4.177% on Monday.
The dollar index, which tracks the greenback
against a basket of currencies of other major trading partners,
was down 0.3% at 104.17.
A slew of announcements from China’s securities
regulator, a reported upcoming meeting between President Xi
Jinping and financial regulators highlighted the urgency with
which Chinese authorities are trying to stem heavy losses in its
stock market. State fund Central Huijin Investment also said
it has expanded its scope of investment in exchange-trade funds.
The 3.5% gain in Chinese stocks was that market’s
biggest one-day percentage gain since 2022, while Hong Kong’s
Hang Seng Index rose 4%, its most in a day in six months.
China’s blue-chip index plunged to a five-year low
last week on the back of the country’s ailing economy, which had
prompted state-backed investors, dubbed the “national team”, to
step up their buying of blue-chip stock tracking index funds to
support the market.
Brent and U.S. crude futures climbed after the U.S. Energy
Department said crude oil production would not grow as fast as
previously forecast.
U.S. crude rose 0.7% to settle at $73.31 a barrel,
while Brent crude rose 0.8% to $78.59.
(Additional reporting by Karen Brettell and Herbert Lash in New
Yok, and Alun John in London and Rae Wee
Editing by Sam Holmes, Sharon Singleton, Emelia
Sithole-Matarise, Ros Russell and David Gregorio)
