GLOBAL MARKETS-U.S. stocks surge, dollar dips on solid earnings, UK policy U-turn

The 30-year bond last fell 20/32 in price to yield 4.0152%, from 3.975% late on Friday. The euro and sterling gained strength following Hunt's announced policy reversal, causing the greenback to lose ground against a basket of major world currencies.

Wall Street rallied on Monday, with U.S. equities picking up where their European counterparts left off as strong earnings and a financial policy reversal in the U.K. fueled risk appetite and boosted the sterling and euro against the greenback. A broad-based rally sent all three major U.S. stock indexes sharply higher, while Treasury yields eased and the dollar lost ground.

"The catalysts that have triggered in the markets year-to-date are well-known," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. "Now, investors are looking for green shoots of catalysts that can start to provide some improvement." Stocks were primed for a strong open after Britain's new finance minister Jeremy Hunt scrapped Prime Minister Liz Truss's proposed tax cuts and reined in her energy subsidies, while Bank of America Corp posted consensus-beating third quarter results, having benefited from a spate of interest rate hikes from the Federal Reserve.

The Dow Jones Industrial Average rose 585.38 points, or 1.98%, to 30,220.21 the S&P 500 gained 98.4 points, or 2.75%, to 3,681.47 and the Nasdaq Composite added 358.56 points, or 3.47%, to 10,679.94. European stocks closed sharply higher on the UK's financial policy reversal.

"There’s some relief that there’s better stability in the UK financial system," Sroka added. "It’s been a bit of a roller coast ride with the UK trying to stabilize themselves and the recent moves are positive steps toward that end." Meanwhile, the easing yuan weighed on Asian markets.

The pan-European STOXX 600 index rose 1.83% and MSCI's gauge of stocks across the globe gained 2.18%. Emerging market stocks rose 0.37%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.17% lower, while Japan's Nikkei lost 1.16%.

Treasury yields dipped early in the session, tracking similar moves in the UK bond market. But that dip as since pared, and benchmark Treasury yields were last essentially unchanged.

Benchmark 10-year notes last fell 1/32 in price to yield 4.0083%, from 4.006% late on Friday. The 30-year bond last fell 20/32 in price to yield 4.0152%, from 3.975% late on Friday.

The euro and sterling gained strength following Hunt's announced policy reversal, causing the greenback to lose ground against a basket of major world currencies. The dollar index fell 1.08%, with the euro up 1.29% to $0.9844.

The Japanese yen weakened 0.06% versus the greenback at 148.86 per dollar, while sterling was last trading at $1.1363, up 1.73% on the day. Crude prices oscillated as markets juggled signs of looming recession China's continued loose monetary policy.

U.S. crude settled down 0.18% to close at $85.46 per barrel, while Brent settled at $91.62 per barrel, essentially flat on the day. Softness in the greenback gave a boost to gold prices.

Spot gold added 0.6% to $1,651.72 an ounce.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)