NEW YORK, Oct 16 — Stocks surged globally yesterday in their best day in five months as strong US corporate earnings reports fuelled optimism about the economy, though three-year-high oil prices kept inflation risks alive and lifted government bond yields.
The Dow Jones Industrial Average jumped 1.1 per cent in its best weekly performance since June 25. The S&P 500 climbed 0.75 per cent to notch its best week in 2-1/2 months, and the Nasdaq Composite added 0.5 per cent. Unperturbed by news of a fatal stabbing of a British lawmaker yesterday, Britain’s FTSE 100 climbed 0.37 per cent to hit a near 20-month high. The UK blue-chip index has now recovered all ground lost since the coronavirus pandemic began in March last year.
US crude recently jumped 1.13 per cent to US$82.23 per barrel and Brent added 0.83 per cent to US$84.70, after hitting a high of US$85.10. In Europe, 10-year Bund yields slipped after registering seven straight weeks of gains on signs of rising inflationary pressure and robust economic growth. Gold prices took a breather yesterday after having their best day in seven months the previous day. Spot gold dropped 1.6 per cent to US$1,766.82 an ounce, and US gold futures fell 1.67 per cent to US$1,766.70 an ounce.