U.S. stocks added to a global selloff on Monday as markets digested news of capital controls in Greece and the country veered toward a default on its debt, while the euro recouped some of its earlier losses against the dollar.
The biggest swing in China’s benchmark equity index since 2009 threatens to further erode confidence in the nation’s stock market.
U.S. stocks rose for a fourth day amid optimism companies will report better-than-forecast earnings for the second quarter. Gold advanced and the yen weakened, while the British pound touched a three-year low.
The economy expanded at a “modest to moderate” pace in 11 of 12 Federal Reserve districts, with broad-based gains ranging from business services to construction and manufacturing, the central bank said today.
Federal Reserve Chairman Ben S. Bernanke’s unprecedented bond buying pushed the Fed’s balance sheet to a record $3 trillion as he shows no sign of softening his effort to bring down 7.8 percent unemployment.
Shinzo Abe is set to become the best friend of investors in Treasuries as Japan’s prime minister buys U.S. government bonds to weaken the yen and boost his nation’s slowing economy.
Stocks rose, snapping a two-day slide, amid optimism that U.S. corporate earnings will extend a third straight year of growth. The yen weakened on speculation the Bank of Japan will expand stimulus.
The post-election rout in U.S. stocks has driven the Standard & Poor’s 500 Index down so far that it would have to advance 26 percent to reach the valuation of bull markets since John F. Kennedy was in the White House.