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US stocks rebound as crude-oil rally spurs broader advance

 

Bloomberg

U.S. stocks rose as a rally in crude oil boosted energy producers, overshadowing concerns that central banks could begin to tighten monetary policy. The S&P 500 Index rose 0.3 percent to 2,157.02 at 9:33 a.m. in New York, after two days of losses following hawkish comments from Federal Reserve officials.
Equity markets have seen a revival of volatility after weeks of torpor, and the S&P 500 may be headed for more turbulence in October, a month that’s delivered the most swings of at least 1 percent for the S&P 500 Index since 2000. While investors are scrutinizing data for signs of stronger growth and preparing for another corporate earnings season, they’re also keeping a close eye on signals from policy makers.”The most important thing on investors’ minds are still central banks,” said Christian Zogg, head of equity and fixed income at LLB Asset Management in Vaduz, Liechtenstein. His firm manages the equivalent of about $10 billion. “While a normalization of interest rates would probably give more confidence to market participants in the longer run, it’s clear that a change of central bank policies will add uncertainty and shake the market a little.”
Stocks in Europe slid amid investor concern that the European Central Bank is moving toward a less accommodative policy stance. Bloomberg News reported Tuesday that an informal consensus was building in the ECB to gradually rein in quantitative easing. The Stoxx Europe 600 Index lost 0.5 percent today, and fell as much as 1.2 percent. Crude rose to a three-month high near $50 a barrel after industry data indicated that U.S. crude stockpiles plunged last week.

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