Lower oil prices gain stocks as Treasury yields ease

NEW YORK (Reuters) – Oil prices fell sharply on Wednesday amid concerns about demand, while Wall Street stocks rose after recent losses.

Brent crude futures touched their lowest since early February. Earlier, data showed Chinese export growth slowed in August. Read more

US Treasury yields fell after earlier hitting a three-month high, with the last 10-year bond yielding 3.29%, while the three major US stock indexes rose in early trading.

Concerns about persistently high inflation and persistently high interest rates have raised yields in recent weeks.

The European Central Bank is widely expected to raise interest rates sharply when it meets this week, while the US Central Bank is expected to raise rates by another 75 basis points at its September 20-21 meeting. Read more

Federal Reserve Chairman Jerome Powell is expected to speak on Thursday.

“We’ve seen global repricing and these have generally been supported by an acceleration of expected tightening due to inflation concerns,” said Jonathan Cohn, head of interest rate trading strategy at Credit Suisse in New York.

US crude recently fell 3.51% to $83.83 a barrel, and Brent crude was $89.89, down 3.17% on the day.

Dow Jones Industrial Average (.DJI) The Standard & Poor’s Index rose 179.79 points, or 0.58%, to 31,325.09 points (.SPX) It rose 23.12 points, or 0.59%, to 3,931.31 and the Nasdaq Composite (nineteenth) It added 63.63 points, or 0.55%, to 11608.54 points.

Pan-European STOXX 600 Index (.stoxx) Lost 0.60% as the MSCI gauge of stocks worldwide (.MIWD00000PUS) 0.07% profit.

The US dollar index was weaker. The dollar currency earlier touched a new 24-year high against the Japanese yen.

The dollar index fell 0.118%. The Japanese yen fell 1.17% against the dollar at 144.50 per dollar.

The euro rose 0.42% to $0.9944.

The European Union proposed a cap on Russian gas prices on Wednesday, hours after President Vladimir Putin threatened to cut off all supplies if they took such a step, raising the risk of rationing in some of the world’s richest countries this winter. Read more

Liz Truss, who took office as Britain’s prime minister on Tuesday, pledged immediate action to help the economy, which is facing double-digit inflation and a prolonged stagnation expected. Read more

The British pound was last traded at $1.1466, down 0.43% on the day.

(This story has been reworked to change the headline tag to Global Markets from Global Stocks)

Additional reporting by Karen Brittel in New York and Elizabeth Hawcroft in London; Editing by Angus McSwan, William MacLean and Josie Coo

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