NEW YORK, Feb 20 — A gauge of global equity markets snapped a three-day losing streak to inch higher testerday as investors sold technology shares and rotated into economically sensitive cyclical stocks in anticipation the US 
economy will boom on pent-up demand once the coronavirus pandemic is subdued.
Oil prices fell from recent highs as Texas energy companies began preparing to restart oil and gas fields shuttered by freezing weather, while US Treasury yields climbed.
The MSCI’s global stock index was up 0.16 per cent at 679.74, after losing ground for three consecutive sessions.
On Wall Street, stocks steadied as cyclical sectors edged higher while tech names, which had started the session modestly stronger, reversed course to extend their recent decline.
A battle continues between tech-led growth stocks and cyclicals, companies that are heavily affected by economic conditions, said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
“When the economy is roaring, they’re roaring. When the economy is weakening, they’re weakening,” Ghriskey said. “The economy will roar, at least for a period of time. There’s huge pent-up demand, whether just for travel or going back to work.”
The Dow Jones Industrial Average rose 0.98 point, or 0 per cent, to finish at 31,494.32, the S&P 500 lost 7.26 points, or 0.19 per cent, to close at 3,906.71 and the Nasdaq Composite added 9.11 points, or 0.07 per cent, to end at 13,874.46.
The S&P 500 technology and communication services sectors fell, while financials, industrials , energy and materials rose more than 1 per cent.
European shares edged higher yesterday as an upbeat earnings report from Hermes boosted confidence in a broader economic recovery. The pan-European STOXX 600 index closed up 0.53 per cent.
US Treasury yields on the longer end of the curve rose to new one-year highs yesterday as Congress was poised to act on a massive coronavirus relief package, while the yield on 30-year inflation-protected securities (TIPS) turned positive for the first time since June.
Core bond yields have pushed higher globally, led by the so-called reflation trade, where investors wager on a pickup in growth and inflation. Growing momentum for coronavirus vaccine programmes and hopes of massive government spending under US President Joe Biden have spurred reflation trades.
The benchmark 10-year yield was last up 5.6 basis points at 1.3381 per cent, its highest level in about a year.
The 30-year TIPS yield, which had been in negative territory since June, surpassed the 0 per cent mark, rising after a weak auction of US$9 billion of the securities on Thursday. It was last at 0.029 per cent.
Oil prices retreated from recent highs for a second day on Friday as Texas energy companies began preparations to restart oil and gas fields shuttered by freezing weather.
Unusually cold weather in Texas and the Plains states curtailed up to 4 million barrels per day (bpd) of crude oil production and 21 billion cubic feet of natural gas, analysts estimated.
Brent crude futures settled at US$62.91 a barrel, down US$1.02 or 1.6 per cent, while US crude oil futures settled at US$59.24 a barrel, down US$1.28, or 2.1 per cent.
Copper jumped to its highest in more than nine years yesterday and towards a third straight weekly gain as tight supplies and bullish sentiment toward base metals continued after the Chinese New Year.
Spot gold XAU= was down 0.38 per cent at US$1,782.2367 an ounce.
The dollar lost ground yesterday, extending Thursday’s decline as improved risk appetite sapped demand for the safe-haven currency and drew buyers to riskier, higher-yielding currencies. The dollar index was off 0.223 per cent.
Bitcoin rose to yet another record high yesterday, hitting a market capitalization of US$1 trillion, blithely shrugging off analyst warnings that it is an “economic side show” and a poor hedge against a fall in stock prices. — Reuters
