The Journal Gazette
 
 
Wednesday, April 07, 2021 10:10 am

Stocks waver in early trading, holding near record highs

Associated Press

 

Stocks are wavering in early trading on Wall Street, holding the market near record highs it set earlier in the week. The S&P 500 edged up 0.1% early Wednesday, and the Dow Jones Industrial Average climbed 0.2%. The Nasdaq and small-company stocks were lower. Treasury yields rose slightly, pushing the yield on the 10-year Treasury up to 1.66%. Traders will be looking ahead to the release later in the day of minutes from the Federal Reserve’s latest meeting on interest rate policy to watch for clues about the Fed’s thinking about the economy and how long it might wait before eventually raising rates.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

TOKYO – Global shares were mostly higher on Wednesday as optimism over progress on coronavirus vaccinations offset worries over flaring outbreaks in many countries.

France's CAC 40 edged 0.3% higher in early trading to 6,150.27. Germany's DAX added 0.1% to 15,227.91. Britain's FTSE 100 gained 0.9% to 6,885.98. U.S. shares were set for gains, with the future for the Dow industrials up nearly 0.1% at 33,341.50. S&P 500 futures gained 0.1% to 4,067.88.

President Joe Biden said Tuesday he was bumping up his deadline for states by two weeks, to April 19, to make all adults in the U.S. eligible for coronavirus vaccines, reflecting steady progress in the U.S.

Optimism about a global economic rebound from the pandemic is growing, but Venkateswaran Lavanya at Mizuho Bank's Asia & Oceania Treasury Department noted some nations were lagging in a “divergent recovery."

“To be sure, the aggregated growth assessment is upbeat. Global GDP contraction for 2020, at 3.3%, was not as bad as the 4.4% drop expected earlier,” Lavanya said, referring to gross domestic product.

The International Monetary Fund said it expects global economic growth to accelerate this year as vaccine distribution ramps up and the world rebounds. The 190-country lending agency said it expects the world economy to expand 6% in 2021, up from the 5.5% it had forecast in January. That would be the fastest expansion in IMF records dating back to 1980.

In Asian trading, Japan’s benchmark Nikkei 225 edged 0.1% higher to 29,730.79 and the Shanghai Composite index sank 0.1% to 3,479.63. Australia’s S&P/ASX 200 gained 0.6% to 6,928.00. South Korea’s Kospi added 0.3% to 3,137.41. Hong Kong’s Hang Seng slipped 1.1% to 28,623.28.

Trading in Toshiba Corp.'s shares was halted after the Tokyo-based technology conglomerate confirmed it had received a preliminary acquisition proposal.

Toshiba Corp. said it was seeking more details on the proposal, giving it “careful consideration” and would make an announcement “in due course.” The Japanese financial newspaper Nikkei reported that CVC Capital Partners was looking into acquiring the company for 2 trillion yen ($18 billion).

CVC is an international private equity and credit company that has committed nearly $162 billion in funds, managing more than 300 investors. It declined to comment.

Toshiba, founded in 1875, was long revered as one of Japan’s most respected brands but in recent years has been mired in scandals and burdened by its investments in nuclear power. After the March 2011 nuclear disaster in Fukushima, its costs ballooned because of growing safety concerns and a souring of sentiment toward nuclear power in countries like Germany.

Recent market gyrations mostly reflect varying assessments of the health and speed of the recovery from the pandemic.

Vaccine distribution is speeding up the reopening of businesses, while government stimulus is helping shore them up in the interim.

In energy trading, benchmark U.S. crude edged up 18 cents to $59.51 a barrel in electronic trading on the New York Mercantile Exchange. It gained 68 cents to $59.33 per barrel on Tuesday. Brent crude, the international standard, rose 19 cents to $62.93 a barrel.

In currency trading, the U.S. dollar was at 109.82 Japanese yen, nearly unchanged from 109.81 yen late Tuesday. The euro cost $1.1876, inching up from $1.1870.


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